Tesla’s Master Plan 3, unveiled at last week’s Investor Day, has been described as audacious by leading car analysts. The plan could potentially cause many big car makers to become obsolete, as Tesla’s multitude of new designs and manufacturing processes are set to reduce vehicle production costs by 50%.
Adam Jonas, the lead car analyst from US investment bank Morgan Stanley, believes that the competition will struggle to keep up with Tesla’s ambitious plans. The presentation outlined how Tesla would “in-source” more of the supply chain, including a 50GWh/year lithium refinery which will be commissioned by the end of the year.
Morgan Stanley identified three major takeaways from the event. Firstly, Tesla’s vertical integration enables them to iterate much faster on products and processes compared to when they’re outsourced. Secondly, Tesla keeps its product range narrow and massively scales on individual models to the level of 1 to 2 million units per year. This strategy is in stark contrast with most legacy automotive companies that have announced they will offer many more different models. Thirdly, Tesla’s planned spending of over $US170 billion for the build-out of their manufacturing base for EVs and storage will be difficult for competitors to match.
Tesla also showcased significant gains in its automated dry electrode line, which could be a game-changer for battery production costs. The company is also making huge strides in reducing mass and complexity, and bringing more in-house, which will challenge the current paradigm of outsourcing.
Tesla’s Investor Day event was not about unveiling a new model, but rather showing the manufacturing technology breakthroughs and providing the numbers to show that this is where Tesla is heading. Those who understand this understand the importance of last week’s paradigm shifting presentation. It is clear that Tesla’s Master Plan 3 is an audacious move that could revolutionize the automotive industry and leave many of its competitors behind.
FAQ
Q1: Are electric car batteries recyclable?
A1: Yes, electric car batteries are recyclable.
Q2: Are electric car chargers free?
A2: It depends on the charger and the location. Some electric car chargers are free, while others may require a fee.
Q3: Can electric car batteries be rebuilt?
A3: Yes, electric car batteries can be rebuilt with the right tools and knowledge.
