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 switch to EVs and $10 trillion in spending to create a “sustainable energy future.” TSLA stock dropped late Wednesday.
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The event, at Tesla’s Austin, Texas, factory, began with a keynote presentation from Musk. The CEO outlined his plan for the future of energy. The global EV giant also reiterated its long awaited Cybertruck is coming in 2023.
However, Tesla did not unveil a next generation vehicle, saying that would come at a “later date.”
In the runup to Investor Day, analysts predicted Tesla would reveal a lower-cost EV platform. Tesla has repeatedly teased an EV that would sit around the $25,000 price point. CFO Zachary Kirkhorn, during the Q4 earnings call, said the “next-generation vehicle platform” was a priority.
Tesla Investor Day And Master Plan Number 3
Elon Musk laid out a broad plan for a “sustainable future” Wednesday.
His “Master Plan 3” includes $10 trillion in capital expenditures to cover mining and refining raw materials along with developing storage and vehicle batteries. Musk’s global plan calls for vast energy storage of 240,000 gigawatt hours and sustainable energy production taking place on 0.2% of the Earth’s land area.
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“As we improve the energy density of batteries, you’ll see all transportation go fully electric, with the exception of rockets,” Musk said Wednesday.
His plan is for the power grid to be completely renewable, a total switch to EVs and heat pumps in all homes and businesses. Musk also believes industrial high temperature operations must be electrified as well as shipping cargoes and airplanes.
Musk said his vision is attainable and that what he is conveying is a “message of hope and optimism.”
Tesla’s first Master Plan, revealed in August 2006, presented the company’s goal to build a wide range of EVs. Ten years later, Musk revealed his second “Master Plan.” That focused on self-driving capability and battery energy storage systems.
Tesla Stock Performance
TSLA shares dropped more than 2% after market trade Wednesday. During Wednesday’s regular trade, Tesla stock sank 1.4% to 202.77 amid lower than average traffic. Tesla stock fell 0.9% to 205.71 on Tuesday, after jumping 5.5% Monday. Shares arguably have a cup-with-handle pattern going back to early November (or a too-low handle in a base starting in September). That would suggest a 217.75 buy point.
However, Tesla stock could face possible resistance at its 200-day moving average, currently just above 221.
Tesla stock has doubled from its bear-market low 0f 101.81 on Jan. 6. Much of that reflected Tesla investor day buzz. This follows a historical pattern of TSLA shares running up ahead of similar events. In 2016, Tesla stock went on a monthlong 22% run ahead of Musk’s second “Master Plan” announcement on July 20, 2016.
TSLA stock rank fourth in IBD’s Auto Manufacturers industry group. Tesla stock has a 73 Composite Rating out of 99. The stock also has a 27 Relative Strength Rating. The EPS Rating is 99.
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