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Elon Musk stated on social media site X that the company is working on Tesla (NASDAQ:TSLA) Master Plan 4. “It will be epic,” he previewed. Master plans have been a core element of the long-term bull thesis on Tesla (TSLA) for 18 years.
Tesla’s (TSLA) Master Plan 1 unveiled in 2006 included: (1) build a high-end fully electric sports car (Roadster) to fund development, (2) use the revenue to build an affordable electric car (Model S/X), (3) use that money to build an even more affordable electric vehicle (Model 3/Y), and (4) provide solar power generation options (SolarCity acquisition). The ultimate goal was to create a vertically integrated company that builds electric vehicles, batteries, and solar panels to enable a sustainable energy ecosystem.
Master Plan 2 released in 2016 called for: (1) integrating energy generation and storage from SolarCity into Tesla, (2) expand to cover the major forms of terrestrial transport (cars, trucks, buses), (3) develop self-driving capability that is 10X safer than manual driving, and (4) enable your car to make money for you when you aren’t using it (Tesla Network). The plan was said to be aimed to create a single company that integrates sustainable energy generation, storage, and transportation.
Master Plan 3 disclosed in 2023 included: (1) scale Tesla to “extreme size” to accelerate the transition away from fossil fuels, (2) develop advanced AI capabilities for full self-driving and other applications, and (3) expand into new markets like heating, industrial processes, and long-haul heavy transport.
Shares of Tesla (TSLA) ended the day with a 5.31% gain. Lucid Group (LCID) was 3.97% higher, Rivian Automotive (RIVN) rose 0.69%.
