Tesla’s underwhelming “Master Plan 3”

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The jury is out on Tesla’s (NASDAQ:TSLA) Investor Day event at its Gigafactory in Austin, Texas. Elon Musk started off by talking about the clear path to a fully sustainable Earth, highlighting the dirty and wasteful energy economy that is currently in place. His “Master Plan Part 3” would eliminate fossil fuels including repowering the existing grid with renewables and a switch to all-electric vehicles by consumers and businesses (electric planes and boats were also mentioned). In terms of resources, the company is convinced there are enough nickel, lithium, and cobalt sources to power a sustainable economy.

Reaction: Investors were underwhelmed by the presentation, sending the stock down nearly 6% in AH trading on Wednesday. The future of Full Self-Driving, a robotaxi network, and charging infrastructure was discussed in broad strokes, and while a “next generation” electric-vehicle platform was announced, it didn’t include too many details. Note that Tesla shares have been on rip since investors welcomed in 2023 – sending the stock up 90% YTD – and those betting against the volatile stock have, at times, found themselves in the opposite lane facing traffic.

It was another “buy the rumor, sell the news” event, noted Seeking Alpha contributor Bill Maurer. “The presentation was just too long and wordy for the average investor,” which may have “fueled some of the selling in the after-hours session.” SA contributor Long Term Tips has already broken down what Tesla’s new master plan means for competitors.

Other highlights: Tesla disclosed that it broke ground on a lithium refinery plant in Corpus Christi, Texas with output expected within 10 months. The company also confirmed that a new Gigafactory will be built near the northern Mexican city of Monterrey. As for numbers, potential Tesla CEO successor Tom Zhu said Tesla has now produced 4M cars just seven months after passing the 3M vehicle mark for production.


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