All the things Elon Musk and execs shared (and skipped) at Tesla Investor Day

The massive, big message Tesla CEO Elon Musk and different execs tried to impart throughout its four-hour Tesla Investor Day was how the corporate could be the driver of a world shift away from fossil fuels and in direction of renewable power. Traders, at the very least these lively after the market closed, weren’t impressed maybe as a result of it lacked that massive product announcement, particular particulars on the subsequent step in its so-called grasp plan 3 or Musk’s signature “another factor” line.

Shares of Tesla fell 5.66% in after-hours buying and selling.

A lot of the occasion was extra historical past lesson than a forecast of future enterprise — though the nuance was that, in fact, all roads result in the long run. And enormous sections of the occasion have been devoted to operational efficiencies and efforts to cut back value at just about each degree of firm. (which usually traders like).

Maybe probably the most attention-grabbing components are what was not stated. Musk and an unusually lengthy lineup of division leads didn’t share new particulars on Tesla’s next-generation EV and its upcoming manufacturing facility in Mexico nor did they tackle present points with its Full Self-Driving software program that’s presently unavailable to those that opted to purchase the $15,000 choice resulting from a recall.

Nonetheless, there was some information and insights from the occasion. Right here’s a roundup highlighting the large stuff.

20 million EVs a 12 months by 2030

This isn’t a brand new purpose for Tesla. However a string of executives, who got here on stage to speak about the whole lot from manufacturing and uncooked supplies to design, charging and batteries, all actually tried to show their case for how they might attain that purpose.

The slide above exhibits the prevailing portfolio, the Mannequin S, Mannequin X, Mannequin Y and Mannequin 3 — in addition to the Tesla Semi and the Cybertruck, and two veiled autos.

It’s value trying on the 20 million autos per 12 months quantity for a little bit of a actuality examine. Tesla produced 1,369,611 and delivered 1,313,851 autos in 2022. Toyota, the worldwide gross sales chief, bought 10.5 million autos final 12 months.

Meaning, and comply with the maths, Tesla would wish to extend its manufacturing (and gross sales thoughts you) about 15 instances from 2022.

So, how will Tesla obtain this? Musk stated it’s not a requirement downside (a phrase he has used repeatedly previously). The powerful half is constructing the darned issues, he stated. Tesla’s solutions are: vertical integration, scaling current factories and constructing new ones, making the manufacturing course of extra environment friendly and including a number of extra fashions. (However, apparently, not too many; Musk stated perhaps 10 fashions complete).

Vertical integration and slashing prices

Tesla is legendary for its fixed push in direction of vertical integration. It’s the one automotive firm in current reminiscence that took on making its personal seats, as an illustration.

That message continued on the investor occasion, with executives discussing totally different items of the vertical-integration purpose. Tesla has introduced in home already, together with constructing its personal chip. However the firm has continued to push the bounds of vertical integration, proper all the way down to the software program it makes use of for in-house operations. Execs stated that lately that removed an outsourced software program for recruiting to make use of its personal and that it developed its personal purpose-built microprocessor for high-power electronics that may scale back prices by half.

For Tesla, vertical integration equals value reductions. And that’s one of many massive goals to attain that larger mission.

Lithium plant in Corpus Christi

Tesla has even prolonged its vertical integration efforts to the supplies it makes use of in battery cells.

Tesla formally broke floor at a brand new lithium refinery in Corpus Christi, Texas, Drew Baglino, senior vice chairman of powertrain and power engineering, confirmed throughout the occasion.

In the course of the presentation, Tesla confirmed a rendering of the 50 gigawatt-hour per 12 months lithium refinery. The corporate’s messaging round pace and scale continued with the refinery challenge, as Baglino famous they’re working to have it operational by the top of 2023.

“It is a good instance of one thing the place we’re principally speaking about breaking floor and and beginning commissioning inside 10 months and with precise manufacturing inside 12 months,” Baglino stated. “That’s the goal.”

Musk added later, throughout a Q&A session, {that a} cathode processing facility will finally be constructed adjoining to the lithium refinery. He additionally famous that the corporate would favor if others took on lithium mining.

“We’re doing it as a result of we have now to not as a result of we wish to,” Musk stated.

Mexico manufacturing facility

Mexico President Andrés Manuel López Obrador technically broke the information Tuesday, however Musk reiterated the announcement with out sharing any new particulars other than a rendering.

“We’re excited to announce that the subsequent Tesla gigafactory will likely be in Mexico close to Monterey,” Musk stated. “We do wish to emphasize we’ll proceed to develop manufacturing in any respect of our current factories, together with California, Nevada, right here in Texas, Shanghai, so we intend to extend manufacturing in any respect factories. So the Giga Mexico could be supplemental to the output of all the opposite factories.”

Musk went on to tease a grand opening occasion on the manufacturing facility.

Subsequent-gen autos

As we talked about above, Tesla displayed two veiled autos throughout the presentation, hinting at the way it will construct its next-generation of autos on a totally totally different platform design. A giant a part of that design is constructing in a method that depends on automation to scale sooner and cheaper.

“It’s going to look one thing like this the place we construct all the perimeters of the vehicles independently, we solely paint what we have to, after which we assemble the components of the automotive as soon as, and solely as soon as. We put them the place they should go,”  Baglino stated.

Baglino famous that this is able to imply extra folks and robots having the house to work on separate items of the automotive, somewhat than lugging heavy objects to a central buildout. What that appears like on the manufacturing facility flooring is sub-assemblies, whereby the entrance, rear and flooring with seats are assembled individually, after which put collectively at closing meeting.

“To extend the dimensions of adoption of electrical autos to the orders of magnitude that we simply confirmed you, we have now to make constraints a part of the answer,” he stated. “It leads us to larger than 40% discount in footprint, which suggests we will construct factories sooner, with much less capex and extra output per unit greenback.”

Whereas that theoretically sounds neat, factories are harmful locations and when extra folks work in nearer quarters, accidents can occur.

Neither Baglino, Musk nor head of design Franz von Holzhausen gave further particulars on next-generation autos. The one trace: This next-gen design may be used on the Cybertruck, based on Baglino.

Uncommon earths

As a part of Tesla’s next-gen design, the corporate is creating a brand new drive unit that it says will likely be extra scalable, largely as a result of it’ll finally eradicate using uncommon earth supplies.

“We’ve designed our subsequent drive unit to make use of a everlasting magnet motor to not use any uncommon earth supplies in any respect,” stated Colin Campbell, VP of powertrain engineering, noting that the brand new drive unit value has been decreased to $1,000. These financial savings might, in idea, be handed onto the buyer to make for a extra accessible, reasonably priced EV.

Tesla stated its subsequent powertrain may also use 75% much less silicone carbide with out compromising efficiency or effectivity of the automobile. The brand new powertrain can be appropriate with any battery chemistry, which is able to give Tesla extra flexibility in battery sourcing, stated Campbell. Lastly, Tesla’s new powertrain manufacturing facility is seemingly 50% smaller than the present one in Austin, which Campbell stated means sooner scaling of EV manufacturing.

Warmth pumps

The third a part of Tesla’s Grasp Plan Half 3 is to modify house, enterprise and industrial heating to warmth pumps. Most of that portion of the presentation was only a Local weather Tech 101 on the ailing results of conventional heating techniques and the way warmth pumps might assist. Musk stated in some unspecified time in the future Tesla would possibly think about constructing warmth pumps for the house to assist remedy this downside.

Tesla already produces warmth pumps for its vehicles, so increasing into houses wouldn’t be far out of left discipline. However if in case you have a gasoline or oil heater, the excellent news is you don’t have to attend for Tesla to exchange it. Loads of different corporations already do that, together with Sealed and BlocPower.

Charging and power storage

Tesla broke up its info-dump with some bulletins, and a number of other hints, on the way forward for its EV charging and power storage companies. Most concretely, the automaker formally launched Magic Dock, an improve to Tesla’s charging stations which opens them as much as autos that aren’t Teslas. Rolling out the tech will allow Tesla to faucet into billions in federal subsidies.

Tesla additionally stated it’ll add a $30 “limitless in a single day house charging” plan to Tesla Electrical in July. An invitation-only electrical plan, Tesla Electrical is solely out there to Powerwall havers in components of Texas the place retail selection exists. Tesla added that it goals to develop its electrical plan into different areas — “market by market, in the identical method that we’ve approached Tesla insurance coverage.” The corporate provided no particular dates.

Later, the automaker stated it might debut new power storage merchandise in 2023. One chart proven to traders appeared to depict new megapack and powerwall designs, additionally hidden beneath illustrated veils. Take this with a grain or extra of salt; Tesla has a monitor document of lacking its personal deadlines.

Robotic

Tesla teased somewhat extra details about its humanoid robotic, the Optimus, with a video displaying two robots slowly constructing one other bot — a giant step up from the prototype Tesla confirmed final October at AI Day.

As typical, Musk acknowledged that Optimus will likely be value considerably greater than the automotive facet of issues. Optimus is skilled utilizing the identical AI that trains Tesla’s Autopilot and FSD, and Musk detailed how even a lot of the {hardware} for Optimus is taken from Tesla’s vehicles.

“The actuators in Optimus are all customized Tesla actuators,” stated Musk. “We designed the electrical motor or the gearbox, the facility electronics, clearly the battery pack and the whole lot else that goes into Optimus. The identical crew that designed the groundbreaking electrical motors which can be within the Mannequin S Plaid designed the actuators within the robotic.”

What this implies, stated Musk, is that Tesla has the instruments to deliver an precise humanoid robotic product to market at scale. Now it’s only a query of timing. And in addition, apparently, of what the ratio of people to humanoid robots will likely be. Musk reckons it’ll be larger than one-to-one as a result of the robots can be utilized at houses, in industrial use circumstances and extra.

How the robotic matches into Tesla’s Grasp Plan Half 3, which is targeted on a sustainable power future for Earth, isn’t precisely clear.