Tesla (D.S.L.A) CEO Elon Musk announced his “Master Plan 3” during the EV company’s Investor Day event on Wednesday. Musk’s ambitious plan calls for a wholesale shift to EVs and spending $10 trillion to create a “sustainable energy future.” TSLA stock fell late Wednesday.
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The event, which took place at Tesla’s Austin factory in Texas, began with Musk’s keynote presentation. The CEO outlined his plan for the future of energy. The global EV giant has 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.”
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. CFO Zachary Kirkhorn said during the Q4 earnings call that the “next-generation vehicle platform” is a priority.
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 plan is to make the power grid 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 cargo and aircraft.
Musk said his vision was achievable and that what he was conveying 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.
Tesla stock performance
Shares of TSLA fell more than 2% in after-market trading on Wednesday. During regular trading on Wednesday, Tesla stock fell 1.4% to 202.77 amid mid-day trading. 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.
However, Tesla stock could face potential resistance at its 200-day moving average, currently above 221.
Tesla shares have more than doubled from their bear-market low of 101.81 on Jan. 6. Much of that reflected the Tesla Investor Day buzz. It runs ahead of events that resemble TSLA stock’s historical pattern. 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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