Current:Home > InvestTesla has a new master plan. It's not a new car — just big thoughts on planet Earth -Momentum Wealth Path
Tesla has a new master plan. It's not a new car — just big thoughts on planet Earth
View
Date:2025-04-17 23:32:07
Anticipation had built for days. Tesla was poised to unveil a new strategic plan at its Investor Day, only the third time the company has laid out a "master plan" that would guide its future.
Analysts were eager to see a new Tesla model — specifically, a much cheaper Tesla, one that could make the most popular electric vehicle brand in America accessible to a far broader swath of buyers.
But at its Investor Day on Wednesday, Tesla did not reveal that vehicle.
Elon Musk's new master plan? Ending fossil fuels.
Instead of a shiny new car, the company went big-picture on climate change, making the case for an aggressive global transition away from fossil fuels — one with a vast number of electric vehicles and batteries, Tesla's core products, as the key components.
Good for a company that has always touted its green credentials, but Wall Street would have preferred a new car. Tesla stock dropped markedly in after-hours trading.
Musk had a lot in his mind about planet Earth
In some ways though, it was vintage Tesla.
Tesla has already radically reshaped the climate conversation, by spurring the auto industry to embrace electric vehicles.
The new "master plan" extended beyond the auto sector to talk about decarbonizing the global electric grid as well as all industry, shipping and air travel, too.
Musk opened the event by arguing the world can rapidly pivot to renewable energy with the help of batteries (to store solar power to use at night, for instance) and, of course, battery-powered electric vehicles. This new "master plan" also nodded to heat pumps and hydrogen for industrial uses.
Lots of researchers, analysts and nonprofit groups have charted out paths to combat climate change. Most emphasize that time is running out, and the scale of change required is daunting.
Musk's tone was more optimistic. He said Tesla had done the math and the switch would cost $10 trillion, less than the world would spend on fossil fuels over the same timeframe. Fully $7 trillion of that would be for electric vehicles — the market Tesla revolutionized, and intends to dominate worldwide.
"Today is not just for investors of Tesla, but anyone who is an investor in Earth," Musk said. "Earth can and will move to sustainable energy, and it will do so in your lifetime."
Making the case for innovation, despite no big reveal
With no brand new vehicle to drive out on stage, Tesla executives and engineers shared information about how the next generation of vehicles will be designed and built.
The company claims to have a radically reinvented assembly process, which involves making the front and back of the car separately, that could cut production costs by 50%. Tesla also says future vehicles will require no rare earth elements and could incorporate any battery chemistry, making it easier to source raw materials.
To bolster its reputation as an innovative company, Tesla also bombarded investors with examples of how it has developed new features and cut costs.
Tesla boasted of a software update to automatically adjust air suspension mid-drive, based on data from other vehicles about where the road is rough, and a strategy to cut costs on Supercharger stations by preassembling entire stations and dropping them down from a crane, instead of installing each charger individually on location.
A head start in the race for electrification
The investor day came as investors were feeling more optimistic about Tesla's future, despite growing competition.
Every major automaker now believes that zero-emissions vehicles are the industry's future, and they are racing to catch up with Tesla. That makes it likely that Tesla's share of EV sales will shrink, as more competition comes in. That was one reason for the company's precipitous drop in share prices last year.
But Tesla is producing vehicles at a higher volume than its rivals, and it recently cut prices sharply. That has increased interest in Tesla vehicles, and the move was well-received by Wall Street.
And Teslas remain popular with drivers. The company just won the top award for "Overall Loyalty" to a make in S&P Global Mobility's Automotive Loyalty Awards. In general, returning car shoppers stick with their previous brand about 50% of the time. For Tesla buyers, a solid two-thirds return to Tesla.
"Tesla had a very, very strong year," says Vince Palomarez of S&P Global Mobility. "They have produced a product that is attractive to a consumer ... They lowered their price. They're also getting access to the tax credit again."
Palomarez also notes that Tesla owners often install a Tesla charger at their home. That could be an added incentive to stick with the brand, instead of needing to swap out equipment or use an adapter every charge. He compared it to Apple's proprietary chargers.
"If you have an iPhone and you have an iPad and you have a MacBook, you know, you're going to get the Apple Watch .... the infrastructure is built there," he says.
veryGood! (1664)
Related
- Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
- Zendaya’s Euphoria Mom Nika King Reveals Her Opinion of Tom Holland
- Israel wants to evict man from his beachfront cave home of 50 years
- Sweden's expected NATO accession shows Putin that alliance is more united than ever, Blinken says
- Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
- Oregon's ambitious sustainable power plant
- Flooding at Yellowstone National Park sweeps away a bridge and washes out roads
- 7 bombs planted as trap by drug cartel kill 4 police officers and 2 civilians in Mexico, officials say
- Intel's stock did something it hasn't done since 2022
- Despite U.S. sanctions, oil traders help Russian oil reach global markets
Ranking
- What to watch: O Jolie night
- Asmeret Asefaw Berhe: How can soil's superpowers help us fight climate change?
- Nickelodeon's Drake Bell Considered Missing and Endangered by Florida Police
- Scientists give Earth a 50-50 chance of hitting key warming mark by 2026
- Trump's 'stop
- Cerberus, heat wave named for dog that guards Greek mythology's underworld, locks its jaws on southern Europe
- 17 Delicate Jewelry Essentials From Sterling Forever, Oradina, Joey Baby & More
- Pilot says he jumped into ocean to escape New Zealand volcano that killed 22
Recommendation
Brianna LaPaglia Reveals The Meaning Behind Her "Chickenfry" Nickname
Flooding at Yellowstone National Park sweeps away a bridge and washes out roads
The Work-From-Home climate challenge
A teen's solo transatlantic flight calls attention to wasteful 'ghost flights'
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Hi Hi!
The first named storm of the Atlantic hurricane season floods Florida
'Jaws' vs 'The Meg': A definitive ranking of the best shark movies to celebrate Shark Week
Gas prices got you wanting an electric or hybrid car? Well, good luck finding one