Elon Musk intends to kick off March 2023 in an exciting way. The Tesla (NASDAQ:TSLA) CEO has been touting the release of his Master Plan Part 3 for weeks, promising “the path to a fully sustainable energy future for Earth.” On the company’s March 1 Investor Day at Gigafactory Texas, the executive will finally reveal exactly what he means by this. Now, TSLA stock is rising as momentum builds.
In the weeks since Musk first broke the news via Twitter, significant speculation has risen about what will be included in Part 3. Much of that speculation centers around Tesla’s Gen 3 platform. Reports indicate that this new stage of innovation will mean lower-priced electric vehicles (EVs) from the company.
Let’s take a closer look at the upcoming Investor Day event and what TSLA investors can expect.
What This Means for TSLA Stock
After being highly volatile last week, TSLA stock is now steadily trending upward as markets prepare for the big day. As of this writing, shares are up 5% so far. Overall, the stock has also enjoyed a solid month of growth. Shares will likely continue to rise after March 1 as markets react to Musk’s vision for the company.
There’s plenty of reason to suspect that Part 3 of the Master Plan will involve more affordable vehicles. Tesla already touted its upcoming vehicle platform in its full-year financial report for 2022, promising to share new details on March 1.
Tesla is sticking to that promise as it prepares for this coming Wednesday. Musk has also made it clear that he sees this new platform as an important way for Tesla to save on production costs while also creating more affordable EVs. The Verge reports:
“The goal, he has said, is to get to a place where Tesla can make two cars for the same cost as one Model 3. That doesn’t mean that Tesla plans on selling this vehicle for half the price of a Model 3 — only that it is designing a more efficient manufacturing process so it can make this future vehicle faster and more cost-effective.”
This is directly in line with InvestorPlace’s prediction that lower-cost vehicles will be a focal point of Musk’s upcoming remarks. Of course, Part 3 may also include updates on how Tesla plans to leverage artificial intelligence ( ) for things like robotaxis and its full self-driving (FSD) technology, for instance. However, plans for cheaper EVs will likely be the biggest immediate catalyst for TSLA stock.
The Road Ahead
It’s no secret that Tesla fans want to see the company produce an EV that’s affordable for everyday consumers. But this is also what investors want to see from Musk. An expansion into the mass EV market may be the only way Tesla can retain its spot at the top of the EV race. If the company can produce a vehicle that matches lower-cost options from competitors, TSLA stock may emerge as one of 2023’s biggest winners.
On the date of publication, Samuel O’Brient did not hold (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.