Tesla stock dives into limited details from investor day; Musk Outlines $10 Trillion ‘Master Plan 3’

Tesla (D.S.L.A) shares of the global EV company fell on Thursday after its investor day event provided few details on new products. Meanwhile, CEO Elon Musk announced an ambitious “Master Plan 3” with calls for a wholesale shift to EVs and $10 trillion to build a “sustainable energy future.”


The event, which took place at Tesla’s Austin factory in Texas, began with Musk’s keynote presentation. The CEO outlined his plan for future energy and throughout the event, Tesla executives touted cost-cutting plans. Tesla has confirmed that it will build a Mexico manufacturing plant in Monterrey.

The EV company also announced a “Tesla Electric” plan for customers in Texas this summer. Tesla will offer Tesla owners a $30 per month retail electricity plan for unlimited overnight home charging.

The global EV giant reiterated that its long-awaited Cybertruck will arrive in 2023. However, Tesla did not reveal the next-generation vehicle, saying it would arrive at a “later date.”

CFO Zachary Kirkhorn said Wednesday that Tesla’s next-generation vehicle is “looking forward,” with the company’s goal of cutting costs by 50%. According to Kirkorn, this should lead to a much cheaper vehicle. The CFO added that Tesla is working on “robo taxi” variants of its next-generation platform.

“It’s a product that we expect to have a significantly lower cost per mile than the best-selling product in the world,” Kirkhorn said.

Tesla said the next-generation vehicle will be built at its new Mexico plant.

Analysts predict Tesla will unveil a low-cost EV platform ahead of Investor Day. Tesla has repeatedly teased an EV at a $25,000 price point. Kirkhorn said during the Q4 earnings call that the “next-generation vehicle platform” is a priority.

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Tesla Investor Day and Master Plan #3

Elon Musk laid out a broad plan for a “sustainable future” on Wednesday. His “Master Plan 3” calls for $10 trillion in capital spending to mine and refine raw materials and develop storage and vehicle batteries. Musk’s global plan calls for 240,000 gigawatt hours of widespread energy storage and sustainable energy production on 0.2% of Earth’s land area.

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“As we improve the energy density of the batteries, you’ll see all transportation go fully electric, except for rockets,” Musk said Wednesday.

His goal is for the power grid to be entirely renewable, with a wholesale switch to EVs and heat pumps in all homes and businesses. Musk believes industrial high-temperature operations should be electrified, as well as shipping fleets and aircraft.

Musk said his vision was achievable and that it was a “message of hope and optimism.”

Tesla’s first master plan, released in August 2006, laid out the company’s goal of building a wide range of EVs. Ten years later, Musk revealed his second “master plan.” It focused on self-driving capability and battery energy storage systems.

Stock performance

Shares of TSLA fell 7% to 188.70 in premarket trading Thursday. During regular trading on Wednesday, Tesla stock fell 1.4% to 202.77 as it was below average traffic. Tesla shares fell 0.9% to 205.71 on Tuesday, after rising 5.5% on Monday. Stocks can discuss a cup-with-handle pattern (or a very low handle in the base that starts in September) in early November. That would suggest a buy point of 217.75.

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However, Tesla stock could face potential resistance at its 200-day moving average, currently above 221.

Ahead of the Tesla event, TSLA shares more than doubled from bear-market lows of 0f 101.81 on Jan. 6. It follows the historical pattern of TSLA stock and runs ahead of similar events. In 2016, Tesla stock took a 22% one-month run ahead of Musk’s second “master plan” announcement on July 20, 2016.

TSLA stock ranks fourth on IBD Automobile Manufacturers Industry Group. Tesla stock has a composite rating of 73 out of 99. The stock also has a pro strength rating of 27. The EPS estimate is 99.

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