Last updated on March 6th, 2023 at 12:51 am
Days of expectation had passed. Tesla was set to reveal a new strategic strategy at its Investor Day, just the third time a “master plan” was disclosed in its history.
Analysts were thrilled to see a new Tesla model, exceptionally a little more affordable one that would make America’s most popular electric vehicle company more accessible to more customers.
Yet on Wednesday at its Investor Day, Tesla kept the automobile a secret. What is Elon Musk’s next ambitious plan? Removing fossil fuels from use.
The company chose to highlight the bigger picture of climate change rather than a showy new car.
It promoted a quick global switch away from fossil fuels, including numerous electric vehicles and batteries—the main Tesla products.
Excellent for a company that has long boasted about its eco-friendly, but Wall Street would have preferred a new car. Tesla shares saw a substantial drop in after-hours trading.
Musk Was Contemplating The Planet A Lot.
But, in other ways, it was a typical Tesla design. Tesla’s promotion of the adoption of electric cars by the automotive industry has substantially altered how people discuss climate change.
The new “master plan” called for decarbonizing the auto sector and every other sector, including shipping, air transport, and the world power grid.
Musk said at the event’s start that the world could quickly switch to renewable energy with the help of batteries, which can be used to store solar energy for use at night and electric power vehicles.
Heat pumps and hydrogen for industrial usage were also a part of this new “master plan.” Several academics, professionals, and nonprofit groups have suggested methods to reduce climate change.
Most emphasize that there is little time left and that the required change is enormous. Musk was happier throughout his speech.
Tesla calculated that switching would cost $10 trillion, less than fossil fuels would have cost the world over the same period.
Of that, $7 trillion would go towards electric cars, a market that Tesla has revolutionized and is attempting to rule internationally.
Today belongs to everyone who has invested in the planet, not just Tesla stockholders, claim Elon Musk. Switching to renewable energy is feasible and will happen on Earth within your lifetime.
Read: Tesla’s Pay Plan for Elon Musk Challenged in Delaware Court
Making A Case For Innovation Despite No Significant Discoveries
Despite lacking a brand-new car to drive out on stage, Tesla executives and engineers provided insights on how the next generation of automobiles will be designed and built.
The business claims to have a wholly reinvented assembly method that involves producing the front and back of the car separately and may cut production costs in half.
Also, Tesla asserts that future vehicles may utilize any battery chemistry and won’t need rare earth elements, making it easier to get raw materials.
To enhance its reputation as an innovative company, Tesla has often given investors examples of developing new features and cutting expenses.
Tesla touted a software update that would automatically adjust air suspension mid-drive based on information from other vehicles about where the road is rough.
It was in addition to a plan to save money on Supercharger stations by pre-assembling entire stations and dropping them from a crane instead of installing each charger individually on location.
Read: Tesla Issues Massive Recall Over Full Self Driving Malfunctions
A Benefit In The Fight For Electrification
Investors at the investor day were more optimistic about Tesla’s prospects despite increased competition. Every major automaker believes that zero-emission vehicles are the industry’s future to catch up to Tesla.
Tesla’s market share of EV sales is anticipated to decrease as more competition enters the market. That was one of the elements that had a role in the company’s stock price decline last year.
But, compared to its rivals, Tesla manufactures more vehicles and drastically lowers prices. Wall Street was happy with the outcome, and the demand for Tesla vehicles increased.
Yet drivers still like driving Teslas. The company won the highest honor for “Overall Loyalty” to a manufacturer at S&P Global Mobility’s Automotive Loyalty Awards.
Recurring vehicle customers stick with their previous brand around 50%. More than two-thirds of Tesla consumers do business with the firm again.
According to Vince Palomarez of S&P Global Mobility, Tesla had a perfect year. Consumers like the things they have produced.
They cut their prices. Also, they can get tax benefits once again. Tesla owners frequently install a charger at their residences, according to Palomarez.
That might be an extra incentive to stick with the brand rather than replace the equipment or utilize an adapter with each charge.
He compared it to the premium chargers produced by Apple. “You know, you’ll get the Apple Watch if you have an iPhone, an iPad, and a MacBook. There, the infrastructure is developed”, he says.
Related: Tesla: Everything is on sale
