Social Navigation

Tesla Investor Day: Elon Musk focuses on the path to a sustainable energy future


SAN FRANCISCO : Elon Musk, CEO of Tesla Inc, kicked off his company’s Investor Day on Wednesday by describing a plan to eliminate fossil fuels from the economy.

Musk is expected to lay out a plan to create a smaller, more affordable electric car that would boost his brand’s appeal and fend off competition, but he started by introducing the company’s “Masterplan 3” for a “sustainable energy future”.

His previous two master plans – most recently in 2016 – included new model expansion and battery storage.

“There is a clear path to a fully sustainable Earth with abundance,” Musk said. “The electrified economy will require less mining than the current economy,” Musk added.

Executives said they would discuss five areas: renewable energy, electric vehicles, moving to heat pumps, high temperature/hydrogen heat supply and sustainable fuel for aircraft and boats.

Capturing the mass market is critical to Tesla’s goal of increasing shipments 15-fold to 20 million vehicles by 2030. To do that, Tesla will need to improve its battery technology, which Musk has called the “fundamental limiting factor” for the transition. to renewable energy, making it a likely topic for Wednesday’s speech.

Musk could also detail plans to update the company’s best-selling vehicles after Reuters revealed its “Project Jupiter” plan to revamp its Model Y SUV. .

Tesla has become by far the most valuable car company in the world, and the billionaire CEO has ambitions to crack the mass market and transform the EV maker into a company that can create a more climate-friendly world.

Tesla has outperformed the industry in recent years and rapidly increased deliveries despite the pandemic and supply chain disruptions.

But Tesla cut prices in recent months to boost sales, which have been squeezed by a weak economy and growing threats from rivals in the United States and China.

The automaker has just four models, all priced toward the higher end of the market.

Tesla has promised to talk about expansion and investment plans, likely to discuss a wide range of projects from batteries to self-driving technology to new factories.

On Tuesday, Mexican officials announced that Tesla will build a factory in the northern state of Nuevo Leon. It would be the company’s first factory outside the United States, Germany and China, and Musk is expected to provide more details on Wednesday.

Plans for a more affordable car could attract the most interest. In 2020, Musk unveiled a plan to develop batteries in-house, which he said would make self-driving electric cars priced at $25,000 feasible by 2023, but Tesla has struggled to scale production of the so-called 4680 batteries .

Some investors, including those concerned that Musk is spending too much time on his last major acquisition, Twitter, are also hoping the CEO will respond to calls to buy back shares, which are at about half their November 2021 peaks. even after a rebound of more than 60% this year.

Catch all company news and updates on Live Mint. Download the Mint News app for daily market updates and live business news.

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.