After months of neglecting the company he built, Elon Musk seems to care about Tesla (NASDAQ:TSLA) again. The CEO recently tweeted a photo advertising the electric vehicle (EV) leader’s upcoming investor day. TSLA stock has been rising since Musk called attention to the event with a highly enticing update: that he plans to reveal Part 3 of his iconic Master Plan. The digital investing community has been buzzing with anticipation since he tweeted the following yesterday:
Master Plan 3, the path to a fully sustainable energy future for Earth will be presented on March 1.
The future is bright! pic.twitter.com/11ug0LRlbD
— Elon Musk (@elonmusk) February 8, 2023
As InvestorPlace writer William White reports, this could prove to be a significant catalyst for TSLA stock. The event will take place on March 1 at Tesla’s Austin, Texas gigafactory. While it will be streamed live, some investors will be permitted to attend the event in person.
Since the gradual unveiling of the first parts of Musk’s Master Plan in 2006 and 2016, both fans and investors have been watching curiously to see what the third stage will include. Musk has chosen not to wait ten years for the next installment as he did with Part 2.
It’s likely he knows TSLA stock needs the boost it will get from an announcement of this magnitude. But if Part 3 of the Master Plan involves artificial intelligence (AI) as it likely does, this is a highly opportune time to tell the world about it.
Let’s take a closer look at what investors should be expecting when Musk takes the stage at Tesla Investor Day.
TSLA Stock: Musk’s Vision for the Future
More than likely, Musk’s Master Plan will center around AI, specifically how Tesla will implement it in future projects. Cathie Wood recently stated she sees Tesla as a great bet for the AI boom, and it’s a safe assumption Musk would like for her to be correct.
The launch of ChatGPT in November 2022 kicked off a new market frenzy as investors began looking for AI stocks. But Musk has been touting the importance of the emerging technology since long before then. At Tesla’s AI Day in August 2022, he unveiled a humanoid robot prototype called “Optimus” powered by some of the same software as Tesla’s EVs.
Now, the market for new AI tech is hot and Musk will be wanting to cash in. Part 3 of the Master Plan will likely include updates on Tesla’s humanoid bots as well as how it plans to leverage AI technology in its EVs and future vehicles such as robotaxis. Recent data indicates the robotaxi market is expected to grow at a compound annual growth rate (CAGR) of 136.8% by the end of the decade. There has never been a better time for companies to double down on robotaxi operations, and Musk knows it.
This vision will also likely include updates on Tesla’s plans for its full-self driving (FSD) technology.
Affordable EV Plans
Since the EV boom began, investors have been wondering about Tesla’s plans for a more affordable vehicle. Musk had initially highlighted this in Part 1 of the Master Plan, stating, “our long term plan is to build a wide range of models, including affordably priced family cars.” Years after that announcement, Tesla is raising prices while the market of low-priced EVs is only growing.
Economically, it makes sense that Musk would have wanted to produce an everyman EV with a below-luxury price. If Tesla wants to keep its share of the EV market, it will need to come out with its own answer to the Nissan (OTCMKTS:NSANY) Leaf or General Motors’ (NYSE:GM) Chevy Bolt. Speculation is rising that Musk will lay out Tesla’s plans for the long-awaited low-cost EV in Part 3 of the Master Plan.
Updates on Tesla’s Energy Projects
Musk made a lofty promise of a “fully sustainable energy future for Earth” in yesterday’s tweet. This suggests Tesla is focused on the energy technology space. If this is true, Musk will provide some updates on it in Part 3 of the Master Plan and lay out the company’s long-term growth plans. Tesla has been making progress on this front recently, particularly with its energy storage business. Per TechCrunch:
“The automaker said its home and utility-scale battery deployments reached 6.5 gigawatt hours (GWh) during its fiscal 2022, calling it “by far the highest level of deployments we have achieved.” That’s up from about 4 GWh in 2021.”
Additionally, Tesla seems to be making progress on its EV battery practice as well. Morgan Stanley analyst Adam Jonas recently praised its work, stating Tesla “may be about to set a new and far lower industry price for battery costs.” If that is true, it could certainly boost TSLA stock.
Musk will likely provide updates on this front as well as part of his vision for earth’s energy future. EV battery investments skyrocketed in the U.S. in 2022, and 2023 is not likely to be different as the battery race continues.