A Master Plan sounds like the roadmap of any movie baddie, but in this case it is the roadmap that has led Tesla and Elon Musk to be what they are today. The American tycoon, branded by many as the most important figure of our era, has just given the first brushstrokes of a strategy that at the moment only resides in his head. The details of the third part of the Master Plan will soon be revealed, and this time it will cover more companies than Tesla itself.
Obviously the brand of electric cars will be the main axis, the rest of the objectives will pivot on it. The most ambitious are for the now Austin-based company. As Musk himself has been able to confirm, the main purpose is “to scale to extreme size”. These have been the exact words that Elon Musk has used to define a first draft of the third part of the Master Plan. Obviously, the idea seems quite simple: make Tesla even bigger.
More than a decade ago, when hardly anyone knew about the company’s electric cars, Musk bet it all. The founder of Paypal took a company with good ideas, but little projection, and has made it grow to become one of the most valued companies in the world, and the main producer of electric vehicles on the planet. His rivals are desperately trying to hunt him down, possibly soon, but what Tesla has achieved will go down in history.
Main Tesla subjects will be scaling to extreme size, which is needed to shift humanity away from fossil fuels, and AI.
But I will also include sections about SpaceX, Tesla and The Boring Company.
— Elon Musk (@elonmusk) March 21, 2022
Musk argues that scaling the company to new heights is critical to “steer humanity away from fossil fuels and AI”. It is also not something new that the CEO of the company wants to grow the creature of him. A few years ago he stated that his plans consisted of producing 20 million electric cars a year in 2030. A very ambitious figure considering that the two largest global producers: Toyota and Volkswagen, are around 10 million vehicles produced each. .
How to do it is only in the head of Elon Musk, but manufacturing such a volume of electric cars will be a challenge for anyone, even for companies much larger than Tesla. The challenge is significant at various levels: factories, personnel, supplies, components, mineral resources, batteries… In addition to that, the price of the electric car will have to drop to become more viral, something that contradicts the upward trend of recent weeks.
Is Elon Musk telling us that he is going to bring out a cheap electric? It wouldn’t be the first time he’s done it either. The 25,000 euro Tesla has been hovering over our heads for decades, and there is still nothing effective. In fact, for the moment it is discarded. It goes without saying that ours are mere speculations. Musk has earned the right to be taken seriously. The two previous parts of his Master Plan have been fulfilled in detail, and at the moment there is nothing to indicate that this third part will not be fulfilled.