Tesla Investor Day: Musk Outlines $10 Trillion ‘Master Plan 3’ As Tesla Shares Fall

Tesla ( TSLA ) CEO Elon Musk announced his “Master Plan 3” Wednesday during the EV giant’s Investor Day event. Musk’s ambitious plan calls for a total transition to electric cars and $10 trillion in spending to create a “sustainable energy future.” TSLA stock fell late Wednesday.


The event, at Tesla’s factory in Austin, Texas, began with a keynote presentation from Musk. The CEO outlined his plan for future energy. The global electric car giant also reiterated that the long-awaited Cybertruck will arrive in 2023.

However, Tesla did not unveil a next-generation vehicle, saying it would arrive at a “later date.”

In the run-up to Investor Day, analysts predicted that Tesla would unveil a cheaper EV platform. Tesla has repeatedly teased an EV that will hover around the $25,000 price point. CFO Zachary Kirkhorn said during the Q4 earnings call that the “next generation vehicle platform” was a priority.

Tesla’s investor day and master plan number 3

Elon Musk laid out a broad plan for a “sustainable future” on Wednesday.

His “Master Plan 3” includes $10 trillion in capital spending to cover the mining and refining of raw materials along with the development of storage and vehicle batteries. Musk’s global plan calls for massive energy storage of 240,000 gigawatt hours and sustainable energy production taking place on 0.2% of Earth’s land area.

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“As we improve the energy density of batteries, you will see all transportation going completely electric, with the exception of rockets,” Musk said Wednesday.

His plan is for the power grid to be completely renewable, a total transition to electric cars and heat pumps in all homes and businesses. Musk also believes that industrial high-temperature operations must be electrified, as well as transporting cargo and aircraft.

Musk said his vision is achievable and that what he conveys is a “message of hope and optimism.”

Tesla’s first master plan, revealed in August 2006, laid out the company’s goal of building a wide range of electric cars. Ten years later, Musk revealed his second “Master Plan”. It focused on self-driving capabilities and battery storage systems.

Tesla stock performance

TSLA shares fell more than 2% in aftermarket trading on Wednesday. During Wednesday’s regular trading session, Tesla shares fell 1.4% to 202.77 amid lower-than-average traffic. Tesla shares fell 0.9% to 205.71 on Tuesday, after jumping 5.5% on Monday. Stocks arguably have a cup-with-handle pattern going back to early November (or a too-low handle in a base starting in September). This indicates a buy point of 217.75.

However, Tesla stock could face possible resistance at its 200-day moving average, currently just above 221.

Tesla shares have doubled from their lowest market value of 0f 101.81 on 6 January. Much of it reflected the Tesla investor days. This follows a historical pattern of TSLA shares rising ahead of similar events. In 2016, Tesla stock went on a month-long run of 22% ahead of Musk’s second “Master Plan” announcement on July 20, 2016.

TSLA stock is fourth in IBD’s industry group for automakers. Tesla stock has a 73 Composite Rating out of 99. The stock also has a 27 Relative Strength Rating. The EPS rating is 99.

Follow Kit Norton on Twitter @KitNorton for more coverage.


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