Tesla Investor Day: Musk outlines $10 trillion “Master Plan 3” as Tesla Stock plummets

Tesla (TSLA) CEO Elon Musk announced “Master Plan 3” on Wednesday during the electric car giant’s Investor Day event. Musk’s ambitious plan calls for a full shift to electric vehicles and spending $10 trillion to create a “sustainable energy future.” TSLA stock fell late Wednesday.


The event, at the Tesla factory in Austin, Texas, kicked off with a keynote presentation from Musk. The CEO outlined his plan for the future of energy. The global EV giant has also confirmed that its long-awaited Cybertruck is coming in 2023.

However, Tesla has yet to unveil a next-generation car, saying that it will come at a “later date.”

In the run-up to Investor Day, analysts expected Tesla to unveil its low-cost EV platform. Tesla has repeatedly teased an electric car that would be around the $25,000 price point. Chief Financial Officer Zachary Kirkhorn said during the fourth quarter earnings call that the “next-generation vehicle platform” was a priority.

Tesla Investor Day and Master Plan #3

Elon Musk laid out a broad plan for a “sustainable future” on Wednesday.

His “Master Plan 3” includes $10 trillion in capital expenditures to cover mining and refining of raw materials along with the development of storage batteries and vehicles. Musk’s global plan calls for massive energy storage of up to 240,000 GWh and sustainable energy production occurring on 0.2% of Earth’s land area.

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“As we improve the energy density of batteries, you will see all means of transportation being all-electric, except for missiles,” Musk said Wednesday.

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His plan is to have the energy grid completely renewable, and to switch completely to electric vehicles and heat pumps in all homes and businesses. Musk also believes that high-temperature industrial processes should be electric, as well as freight and aircraft.

Musk said his vision is achievable and what he conveys is “a message of hope and optimism.”

Tesla’s first master plan, unveiled in August 2006, presented the company’s goal to build a wide range of electric vehicles. Ten years later, Musk revealed his second “master plan.” This focused on the ability to self-driving and battery energy storage systems.

Tesla stock performance

Shares of TSLA fell more than 2% in an after market trade Wednesday. During normal trading Wednesday, Tesla stock fell 1.4% to 202.77 on below-average traffic. Tesla shares fell 0.9% to 205.71 on Tuesday, after jumping 5.5% on Monday. The stock arguably has a cup pattern with a handle back to early November (or a very low handle on a base starting in September). This may indicate 217.75 buy points.

However, Tesla stock could face potential resistance at the 200-day moving average, currently just above 221.

Tesla stock has doubled from its 0f 101.81 bear market low on Jan. 6. And a lot of that was reflective of the buzz of the Tesla investor’s day. This follows a historical pattern of TSLA shares running prior to similar events. In 2016, Tesla stock held a month-long gain of 22% before Musk’s second “Master Plan” announcement on July 20, 2016.

TSLA stock ranked fourth in IBD Automotive Group. Tesla stock has a composite rating of 73 out of 99. The stock also has a relative strength rating of 27. The EPS rating is 99.

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