Tesla reveals its new growth plan
Musk dangles possible move into heat pumps but doesn’t say when carmaker will unveil next-generation auto.
Elon Musk said the next phase of Tesla’s growth will be built around a global sustainable energy future, one that can serve a much larger world population and be achieved without great economic sacrifice.
The kickoff to the automaker’s Master Plan 3 presentation Wednesday may have disappointed some investors who were expecting new-product information, including details of the future Gen 3 platform.
Tesla shares fell as much as 3.6% to $195.55 in extended trading.
Musk, 51, outlined his vision for a global switch to electric vehicles, driven by $10 trillion in spending to develop sustainable energy worldwide. He also confirmed that Tesla will build a factory in Monterrey, Mexico, as that country's president announced Tuesday. The company’s investor event was streamed live from its factory in Austin, Texas.
“Earth will move to a sustainable energy economy,” Tesla’s chief executive said Wednesday. “And it will happen in your lifetime.”
One product that Tesla could expand to is heat pumps. Musk and Drew Baglino, the automaker’s senior vice president of powertrain and energy engineering, said heat pumps could dramatically cut home and office heating costs, calling them one of the lowhanging fruit of the transition to sustainable energy.
What attendees and the online audience didn’t hear was when Tesla will unveil its next-generation vehicle, with management saying that would come at a “later date.” Tesla did say again that the Cybertuck is coming this year.
The new corporate vision aims to build upon the U.S. electric vehicle market leader’s growth from a niche player into a mainstream automotive manufacturer. Tesla’s two previous strategic plans were unveiled in 2006 and 2016.
Scores of investors f locked to Austin for the invitation-only event, where Tesla planned to showcase its “most advanced production line.” Management was scheduled to discuss topics including long-term growth, next-generation vehicle architecture and capital spending plans.
Investors are eager to learn more details about Tesla’s product strategy, including the Gen 3 vehicle platform. Musk said in January that the company remains on track to start building its long-awaited Cybertruck in Austin later this year, but cautioned that production volume will be limited until 2024.
Musk published his first master plan more than a decade ago, laying out Tesla’s go-to-market strategy of building an electric sports car, then a series of more affordable cars. The company has executed on that vision with the Roadster, the Model S and then the Model 3 sedan, which starts at about $43,000.
Ten years later, Musk released Master Plan, Part Deux, as Tesla was acquiring SolarCity. Musk served as chairman of the solar panel installer, which was led by his cousins.