Tesla has been making headlines for its revolutionary electric vehicles, and now the automotive giant is set to make more noise with its upcoming ‘Tesla Master Plan 3’. The plan is set to be unveiled at Tesla’s Investor Day on March 1st, and many people are speculating that it will include an even greater focus on price cuts across the Tesla fleet.
Let’s explore what Elon Musk’s plans could mean for the company and the industry as a whole.
What is the ‘Tesla Master Plan’?
The ‘Tesla Master Plan’ was first introduced by Elon Musk in 2006, with a goal of providing affordable electric vehicles to consumers. The plan included four main components: developing luxury cars, developing mass-market cars, introducing autonomous driving technology, and expanding into renewable energy storage systems.
In 2016, Musk released an update to the master plan which included further information about Tesla’s plans to increase production and reduce costs so that their vehicles can become more accessible to consumers.
Master Plan 3, the path to a fully sustainable energy future for Earth will be presented on March 1.— Elon Musk (@elonmusk) February 8, 2023
The future is bright! pic.twitter.com/11ug0LRlbD
How Does Price Cutting Fit into this Plan?
Last month, Tesla made headlines when they dropped prices across their fleet by up to 20%.
Tesla’s production growth has been remarkable, and its effects are evident: the company went from having 476,000 units in order backlog during July 2022 to only 74,000 orders by December of that year. This incredible escalation is attributed to their yearly increase in production – 41% more than in 2021 (from 930,422 total units to 1,313,851). Price cuts would thus make Tesla vehicles more accessible to a wider audience, and also help the company remain competitive in the automotive market.
As the days of “unlimited” demand have come to a close, Tesla responding by slashing their prices in an attempt to pressure competitors and appease existing owners was met with mixed reactions from financial analysts; some viewed it as a positive sign of increased competition in the EV market while others were concerned that it could put pressure on profits.
However, recent reports indicate that even deeper price cuts may be coming in the near future if Tesla’s third-generation EV platform delivers on Musk’s promises. He has said that this new technology will reduce costs and improve manufacturability so they can scale production to meet growing demand.
Implications for Industry Growth
Price cuts are not something we typically associate with luxury brands like Tesla but if their ‘Master Plan 3’ does indeed include even deeper reductions then it could have far-reaching implications for both the company and industry growth as a whole.
Lower prices could mean increased demand for their products which would lead to increased sales and potentially new jobs in manufacturing or research & development departments – all key factors in keeping Tesla at the forefront of innovation in electric vehicle technology.
While only time will tell what Elon Musk has planned for his upcoming ‘Tesla Master Plan 3’ presentation at Investor Day on March 1st , one thing is certain – whatever he unveils will impact not only Tesla but also those who work within or rely upon the electric vehicle industry as a whole.
We can only hope that his plans will bring us closer than ever before to achieving cost effective EVs that are accessible to everyone – no matter their budget or location! Only time will tell what comes next – stay tuned!