Tesla (NASDAQ:TSLA) could use a growth catalyst after last month’s turbulence. While TSLA stock is back in the green today, it has not shaken its May volatility as a new month takes shape. The Tesla stock split is coming, but now investors have something else to be watching. Elon Musk has provided new details on what the third part of the Tesla Master Plan will include.
After the success of its first two stages, both fans and investors are expecting big things.
What Is the Tesla Master Plan?
“My day job is running a space transportation company called SpaceX, but on the side I am the chairman of Tesla Motors,” Musk stated in a Tesla blog post on Aug. 2, 2006. The post, titled “The Secret Tesla Motors Master Plan (just between you and me)” outlined his vision for the company. It focused on turning Tesla into an industry powerhouse, providing drivers with a wide range of electric vehicle (EV) models.
Ten years later in July 2016, Musk released the second phase of the Tesla Master Plan. With auto production moving along, his focused now included areas such as solar roofs, integrated battery storage and full self-driving (FSD) technology.
It hasn’t been another ten years, but Musk discussed the Tesla Master Plan Part 3 at a company meeting. Electrek reports that when a staff member asked about the master plan’s next phase, Musk laid out the following:
“Master Plan Part 3 is all about achieving very large scale. In order to shift the entire energy infrastructure and transport infrastructure of earth, there has to be a very high scale. We have to ask what is the actual tonnage? If we work backward from let’s say about 300 TWh of installed capacity in vehicles and stationary [battery packs] then how do you achieve that tonnage from a mining and refining standpoint, but also do so in a sustainable way.”
He later added that the plan’s next phase came down to an important question: “How do you get to enough scale to actually shift the entire energy infrastructure of earth?”
What It Means for TSLA Stock
The first two Tesla Master Plan phases have been instrumental to the company’s growth. And while it hasn’t been a quick or easy road to get here, Tesla has done a good job meeting the goals outlined by Musk in the plan’s first two parts.
He wanted to create an affordable EV, and years later, Teslas have become gradually more affordable. But even as competition has flooded into the EV space, Tesla sales have remained steady. Even inflationary price hikes didn’t stop Tesla from reporting record sales for the first quarter of 2022. The company’s solar energy and battery storage segments have also grown, as has demand for them.
That said, Tesla has seen significant turbulence during the current quarter. Market selloffs have generated bearish energy and Musk’s “super bad” feelings about the economy haven’t been reassuring to investors. But this preview of the Tesla Master Plan Part 3 shows the company is focused on growth, and that is will keep moving forward. We don’t know for sure when the full plan will be released, but it will likely happen before 2026.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.