Elon Musk is working on volume 3 of his so-called master plan of innovations.
Elon Musk is setting up the innovations to which he intends to devote himself in the next decade.
No doubt galvanized by the success of Tesla (TSLA) – Get Tesla Inc Report and SpaceX, he sees things big. We can reasonably expect projects that are likely to surprise even his most fervent fans.
The richest man in the world said last week that he was working on volume 3 of what he calls his master plan. The first volume appeared in August 2006, the second in July 2016..
Musk in 2006 called the project roadmap “The Secret Tesla Motors Master Plan (just between you and me).” It’s a sort of guide to transform transportation and keep the planet from dying from pollution.
“Working on Master Plan Part 3,” Musk last week tweeted to his almost 80 million followers, without providing details.
After a few days of silence, and with expectations building, the entrepreneur lifted the veil on the outline of this series of adventures.
“Can’t wait to hear #TSLA’s master plan 3,” challenged a user on Twitter. “The optionality, verticality, & exponentials @elonmusk & team can take the company is truly mind blogging at this point. All for the greater good of humanity. Why would anyone not invest in this once in a lifetime company!?”
Musk then spoke broadly about what we should expect from volume 3 of the master plan.
“Main Tesla subjects will be scaling to extreme size, which is needed to shift humanity away from fossil fuels, and AI [Artificial intelligence],” Musk said. “But I will also Include sections about SpaceX, Tesla and The Boring Company.”
He didn’t say when we should expect this segment of his master plan.
And the tweet generated many more questions than it answered. For example: Does this mean Tesla is going to build new gigafactories? Does it intend to significantly increase its production volumes from almost a million in 2021? Will Musk finally produce a really cheap electric vehicle for consumers from disadvantaged social backgrounds and everywhere else? Will Tesla build electric buses?
Here’s some ideas from Morgan Stanley analyst Adam Jonas, in a note to investors: “We see Part 3 as mass industrialization. Tesla is developing technology that may ultimately be in position to make a car’s body out of a single piece of casted aluminum alloy as a ‘fuselage’ into which it can ‘inject’ its structural battery pack.
“A fusion of the battery into the structural integrity of the vehicle has the ability to significantly improve vehicle range per unit of mass, driving further cost savings at the vehicle level across a wider range of sustainably sourced battery metals.”
Jonas says that over time Tesla can introduce vehicles “with a starting point as low as $15,000 or less in order to penetrate key emerging markets like India.”