Tesla CEO Elon Musk unveiled the company's long-awaited "Master Plan 3" at an investor day held at its Austin, Texas, gigafactory on March 1 (US time), according to Chinese automotive outlet Pacific Automotive. The plan focuses on transitioning the world to sustainable energy, with a sweeping vision that includes massive battery storage, a shift to electric vehicles, and a new manufacturing approach aimed at cutting costs.
Musk said the world needs 240 TWh of energy storage and 30 TW of renewable power generation, requiring an investment of $10 trillion, to fully transition away from fossil fuels. He claimed there are no insurmountable obstacles, asserting that a sustainable energy economy could support a civilization far larger than the current global population of 8 billion.
New platform and manufacturing overhaul
Tesla confirmed that its next-generation vehicle platform is under development, with details to be revealed later this year. The new platform will reduce manufacturing costs by 50%, cut factory footprint by 50%, and lower carbon emissions by 40%. The company also said it would eliminate rare earth materials from its permanent-magnet electric motors and reduce silicon carbide usage by 75%. A shift to 48-volt low-voltage systems and a redesigned thermal management architecture are also planned.
The Cybertruck, which has been in development for years, is slated for launch this year, and a revised Model Y with improved production processes will also be unveiled in 2023. Tesla aims to produce 20 million vehicles annually by 2030, up from its current pace of about 1.3 million per year. The company said it reached a cumulative production milestone of 4 million vehicles, with the fourth million taking just seven months.
Tesla also announced its next gigafactory will be located in Monterrey, Mexico, with an investment of over $5 billion and an annual capacity of 1 million vehicles, serving both domestic and international markets.
Energy storage and charging expansion
Beyond vehicles, Tesla plans to expand its energy storage business, including Powerwall, Powerpack, and Megapack products, to support a "virtual power plant" concept. It aims to deploy more storage systems and enable energy trading among users. The company also said it will begin trial production of its lithium refinery by the end of this year, with an annual capacity of 50 GWh.
In charging, Tesla's fourth-generation Supercharger is under development, with initial installations in Europe offering longer cables. The company said its network delivered 9 TWh of electricity in 2022 and reduced charging times by 30%.
Regarding the Chinese market, Tesla's global vice president Tom Zhu said lowering costs and improving affordability are key to increasing sales. He noted that the Shanghai gigafactory has achieved over 95% localization of its supply chain.
