- Elon Musk debuted his “master plan” during Tesla’s first Investor Day presentation.
- The automaker teased two new car models, confirmed expansion into Mexico and detailed a revised manufacturing process.
- Musk said he believes Tesla could help transform Earth into a “sustainable energy economy.”
Elon Musk confirmed that Tesla’s next Gigafactory will be located in Mexico during a meeting with investors on Wednesday.
The factory will be located “near Monterey,” according to Musk, who reiterated that Tesla plans to expand production at all of its factories.
The news was confirmed during Tesla’s first Investor Day at the company’s Austin Gigafactory, where Musk presented Tesla’s “third master plan.”
The billionaire previously unveiled previous iterations of long-term plans for the company in 2006 and 2016. While previous plans focused on developing more vehicles, energy storage initiatives and autonomous driving, Master Plan 3 revolves around “sustainable energy for everyone on Earth.”
“I really wanted to deal today not just with Tesla investors who have stock, but really with any investor on Earth,” Musk said. “What we’re trying to convey is a message of hope and optimism and optimism based on real physics and real calculations, not wishful thinking.”
Musk’s plans to transform the Earth into a sustainable energy economy in a few decades focus on a five-step plan that includes powering the existing power grid with renewable energy, completing the transition to electric cars and electrifying planes and boats .
In the past, Tesla has stayed away from boats and planes, but the announcements could be a hint at the automaker’s future plans.
The billionaire joked that someday driving a self-driving gas car will be like “riding a horse and using a cell phone.”
Here’s a breakdown of the five-step plan:
- Renew the existing grid with renewable energy sources.
- Switch to electric cars
- Switch to heat pumps in homes, businesses and industry.
- High temperature heat supply electricity and hydrogen
- Sustainable airplane and boat fuel
During the presentation, Tesla also teased a next-generation car that would be smaller and cheaper than the Model 3, which currently retails for just $42,990.
In the past, Musk has said that Tesla eventually plans to sell an electric car for around $25,000.
The company showed a slide of two unreleased vehicles, but said they don’t plan to officially unveil the new car until later.
Tesla executives also reiterated that the company’s much-hyped Cybertruck will be released this year, though they did not give an exact release date. Musk originally revealed the truck in 2019 and has since pushed back the production schedule 3 times, according to Reuters.
The automaker unveiled plans to ramp up production, announcing it had produced the 4 millionth Tesla on Wednesday.
The company said it plans to meet ambitious production targets by changing its manufacturing process so more people and robots can work on the car at the same time – the change will allow the company to reduce its factory footprint by more than 40% and streamline the process .
“If we’re going to scale the way we want to, we have to rethink manufacturing,” Moravy said.
The stock fell more than 5% in after-hours trading after rallying in recent weeks.