Elon Musk tweeted last week that he is working on the third chapter of the Master Plan. So what will Musk set out for Tesla in Chapter 3 of this master plan? In 2006, Musk unveiled the first chapter of a “big picture” that aimed to develop a low-volume, expensive model that would help the company later develop a mid-volume model. Those two cars are effectively the Model S and Model 3, although the Model 3 is arguably selling better than a mid-production model.
Ten years later, Musk announced the second chapter to integrate energy regeneration and storage; expand the electric vehicle product line to meet the needs of various market segments; develop autonomous driving technology, and let car owners make money by sharing idle vehicles.
In 2022, Musk begins work on a third chapter, which may include the following:
- More prospects for autonomous driving technology. It should also cover Tesla’s plans to launch more models in more segments. That’s critical because Tesla will eventually need to produce smaller, less expensive EVs to keep growing.
- Expand production. A longer-term production outlook may also be included in Chapter 3. Tesla’s long-term goal of producing as many as 20 million vehicles a year will require more assembly and battery facilities.
- Battery supply and innovation. Morgan Stanley analyst Adam Jonas said last week that the third chapter could have a new focus: battery supply and innovation. He even hinted in the report that the third chapter could include more collaborations between Musk’s other companies, such as SpaceX and the Boring Company, an underground tunneling company.
- Tesla’s plans for the humanoid robot Optimus.