Elon Musk’s highly anticipated third Master Plan for Tesla Inc. fell short of investor expectations. The four-hour presentation lacked concrete information about the much-awaited electric vehicles of the next generation.
During his discussion, Elon Musk eloquently spoke about his master plan to take the world in a greener direction. However, there were not many specifics regarding the new items he proposed.
Confirming the production of the forthcoming generation of vehicles in Monterrey, Mexico. Musk withheld any precise details about timing and said a “proper product event” would be held later.
The event began to sap investors’ confidence as it progressed, resulting in Tesla’s shares dropping 6.8% to $189 in after-hours trading. The stock had increased drastically from a two-year low in early January, gaining $310 billion in market value, and it elevated Musk to the number one spot on the Bloomberg Billionaires Index.
During Tesla’s investor event broadcasted live from its Austin, Texas factory, the 51-year-old Musk shared his perspective. He said electric vehicles are commonplace globally due to the hefty $10 trillion spent on sustainable energy production.
Key Takeaways
Tesla’s Investor Day revealed several key points. It highlighted the company’s focus on efficiency and cost reduction rather than the much-anticipated new vehicle platform. Consequently, stock prices fell after the announcement. Although the presentation failed to offer any specific information, it was revealed that Tesla would be constructing a new factory near Monterrey, Mexico, to build their next-generation car.
The ground was broken on a lithium refining plant in Corpus Christi, Texas. Tesla also presented their large array of executives, many of whom had never been heard of before. During the Q&A session, Elon Musk was joined by sixteen other people.
Focus on Efficiency
Tesla’s ambition or master plan to be more efficient is leading them to reduce the size of their upcoming production facilities by 40%. The Chief Financial Officer, Zach Kirkhorn, promised to reduce the production costs of the company’s next-generation vehicles by half.
Musk and his Senior VP of Powertrain and Energy Engineering, Drew Baglino, discussed the potential for Tesla to make a foray into the market of heat pumps. This, they argued, could prove to be a game-changer in the shift to renewable energy sources. Installing heat pumps in residential and commercial settings could dramatically reduce energy costs.
New Faces Unveiled To Investors
At the presentation, Tesla’s chief executive put forth several little-known executives. For instance, the head of worldwide charging facilities, Rebecca Tinucci, spoke of the organization’s Supercharger framework. She also shared how the “Magic Dock” enabled drivers of other electric vehicles to use Tesla charging stations.
Tesla proudly proclaimed their increasing capability to quickly initiate operations in its production facilities. They announced that the construction of a lithium refinery in Corpus Christi, Texas, has begun, and they plan to start generating battery-grade lithium chemicals in a year.
Moreover, they confirmed the coming of the Cybertruck this year, with volume production slated for 2024. Their strategic agenda seeks to further their development from being a specialized EV player to becoming a prominent auto manufacturer. The company previously revealed two such strategies in 2006 and 2016.
