Elon Musk unveiled the third part of Tesla’s “Master Plan,” in which the company will lead the global effort to eliminate fossil fuels and convert the world to renewable energy. The plan was presented at an investor event held Wednesday at the company’s Gigafactory in Austin, Texas.
Masterplan 3 includes adding renewable energy to the existing grid, producing more electric vehicles, installing heat pumps in homes and buildings, using high-temperature heat supply and hydrogen for industrial applications, and building sustainably powered aircraft and Boats. Musk’s plan is to create “a sustainable energy civilization.”
Tesla predicts that $10 trillion in investment will be required to bring about this sustainable future powered by renewable energy. Musk said it’s “not a huge number relative to the global economy.”
Tesla predicts $10 trillion in investment will be required to bring about this sustainable future powered by renewable energy
“There is a clear path to sustainable energy on Earth,” Musk said. “It does not require destruction of natural habitats. It doesn’t require us to be frugal and stop using electricity and be out in the cold or anything.”
A big part of achieving that vision involves expanding the world’s energy storage capacity by up to 240 TWh. Speaking at the event, Tesla executives said this can be achieved without having to mine a significant amount of ore. Musk claimed it would only need less than 30 percent of all the nickel on Earth. It would also need iron, but Musk isn’t worried, saying it’s the most abundant metal on Earth.
Musk adds that the infrastructure required for this, including wind and solar, will take up “less than 0.2 percent” of the Earth’s surface. Details are still light on how all this is to come to fruition, but Musk promised to release a white paper outlining the plan soon.
Musk adds that the infrastructure needed for this, including wind and solar, will take up “less than 0.2 percent” of the Earth’s surface
“I really wanted today to be not just about Tesla investors who own shares, but everyone who is an investor in the Earth,” Musk said optimistically.
The nearly three-hour event did not include specific information about new vehicles. The company did tease two mysterious vehicles that were hidden in the presentation footage — including one that is clearly a smaller car and the other that looks like a small commercial truck.
Also absent was any mention of Musk’s other companies, SpaceX and The Boring Company, despite Musk previously suggesting that the Third Master Plan would attempt to connect his various ventures.
Tesla demonstrated a new, more efficient vehicle manufacturing process that will be used in the next generation of vehicles. The company calls it the “Unboxed Process,” which allows the vehicle to be built once on the assembly line and painted only the parts that need painting. The automaker also claims that the next-generation power unit will not use any rare earth minerals.
Tesla’s previous two master plans mostly hit the mark. While the company was able to achieve most of the goals of the first plan, which was first published in 2006, the second plan has largely not been achieved.
That plan, published in 2016 under the cheeky title of “Part Deux,” said Tesla would create a thriving solar power company, introduce multiple new vehicles in all major categories, achieve full autonomy, and launch a robotaxi network that vehicle owners can earn up to $30,000 per year.
While Tesla has launched its solar roof business, installations are progressing slowly. Some customers have complained about huge price increases. And the company has scaled back its ambitions as earnings remain relatively flat.
Tesla has introduced two new vehicles since the publication of the second Master Plan: the Tesla Semi and the Cybertruck. Tesla Semi deliveries began late last year and the Cybertruck is still scheduled for release this year – according to Tesla chief designer Franz von Holzhausen who was on stage at the event. Musk has said mass production of the bizarrely designed truck would begin in 2024.
Meanwhile, Tesla’s plans for fully autonomous vehicles are uncertain. While AV operators like Waymo and Cruise are racking up the miles with their fully self-driving robotaxis, Tesla has taken a different approach, rolling out a $15,000 option called Full Self-Driving to hundreds of thousands of customers. Despite the misleading name, FSD is only a Level 2 partially autonomous system that must be constantly monitored by the driver. Tesla recently paused new installations of FSD after the National Highway Traffic Safety Administration called it a “crash risk.”
Similarly, Musk’s promise that Tesla owners could earn passive income with FSD by allowing their vehicles to autonomously pick up passengers as a robotaxi service has not materialized. In recent months, Musk has suggested that Tesla create a self-contained robotaxi vehicle, casting doubt on his original proposal that Teslas on the road today could qualify for such a service.
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