Everything Elon Musk and his executives shared (and skipped) at Tesla Investor Day

massive, big That is the message Tesla CEO Elon Musk and different executives are attempting to convey on the four-hour Tesla Investor Day on how the corporate can change into a driver of the worldwide transition to scrub power. Buyers, no less than these lively after the market closed, weren’t impressed, maybe as a result of there wasn’t that massive product announcement, particular particulars in regards to the subsequent step within the so-called grasp plan 3, or Musk’s signature “yet one more factor” line.

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

A lot of the occasion was extra of a historical past lesson than a prediction of future affairs – the nuance, in fact, was that each one roads result in the longer term. And far of the exercise was dedicated to operational efficiencies and price discount efforts at practically each stage of the corporate. (usually buyers love).

Maybe probably the most fascinating elements had been the unsaid. Musk and an unusually lengthy cadre of division leaders didn’t share new particulars about Tesla’s next-generation EV and its upcoming manufacturing unit in Mexico, nor did it handle present points with its Full Self-Driving software program at present unavailable to those that select to purchase it. $15,000 choice as a result of recall.

Nonetheless, there was some information and insights from the occasion. Here is a roundup that highlights the large issues.

20 million EVs per yr by 2030

This isn’t a brand new goal for Tesla. However numerous executives who took to the stage to speak about every part from manufacturing and uncooked supplies to design, charging and batteries did certainly attempt to show their claims. How they’d obtain this purpose.

The slide above reveals the present portfolio, the Mannequin S, Mannequin X, Mannequin Y, and Mannequin 3, in addition to the Tesla Semi and Cybertruck, and two coated automobiles.

It is value wanting on the 20 million automobiles per yr for somewhat actuality test. Tesla produced 1,369,611 items in 2022 and delivered 1,313,851 automobiles. International gross sales chief Toyota bought 10.5 million automobiles final yr.

Meaning comply with the mathematics, Tesla ought to improve manufacturing (and gross sales to you) by about 15 instances from 2022.

So how will Tesla obtain this? Musk stated it isn’t a requirement challenge (a phrase he is used many instances previously). “The arduous half is constructing the rattling issues,” he stated. Tesla’s solutions are: vertical integration, scaling up present factories and constructing new ones, making the manufacturing course of extra environment friendly, and including a number of extra fashions. (However curiously not too many; Musk stated perhaps 10 fashions in complete).

Vertical integration and decreasing prices

Tesla is known for its fixed push in the direction of vertical integration. For instance, it’s the solely car firm that has just lately began producing its personal seats.

This message continued on the investor occasion, the place executives mentioned totally different elements of the vertical integration purpose. Tesla has already introduced it residence, together with constructing its personal chip. Nonetheless, the corporate continued to push the boundaries of vertical integration right down to the software program it used for inner operations. Execs stated it has just lately gotten rid of outsourced software program to recruit to be used and developed its personal purpose-built microprocessor that can reduce prices in half for high-power electronics.

For Tesla, vertical integration equals value reductions. And this is without doubt one of the biggest targets of reaching the larger mission.

Lithium manufacturing unit in Corpus Christi

Picture Sources: Tesla/screenshot

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

Drew Baglino, senior vice chairman of powertrain and power engineering, confirmed in the course of the occasion that Tesla has formally laid the groundwork for a brand new lithium refinery in Corpus Christi, Texas.

In the course of the presentation, Tesla confirmed an image of the 50 gigawatt-hours per yr lithium refinery. The corporate’s messages on pace and scale continued with the refinery venture, as Baglino said that they’re working to get the refinery venture operational by the tip of 2023.

“It is a good instance of one thing we’re speaking about principally laying the groundwork and commissioning in 10 months and precise manufacturing in 12 months,” Baglino stated. “That is the goal.”

Musk later added throughout a Q&A session {that a} cathode processing facility will ultimately be constructed adjoining to the lithium refinery. He additionally said that the corporate would like others to mine lithium.

“We do that not as a result of we need to, however as a result of we now have to,” Musk stated.

Mexican manufacturing unit

Picture Sources: Tesla/screenshot

Mexican President Andrés Manuel López Obrador technically broke the information on Tuesday, however Musk reiterated the announcement with out sharing any new particulars aside from in a presentation.

“We’re excited to announce that the following Tesla gigafactory can be close to Monterey, Mexico,” Musk stated. “We need to emphasize that we’ll proceed to extend manufacturing in any respect our present factories, together with in California, Nevada and right here in Texas, Shanghai, so we plan to extend manufacturing in any respect factories. Thus, Giga Mexico will complement the manufacturing of all different factories.”

Musk continued to make enjoyable of a grand opening occasion on the manufacturing unit.

New technology automobiles

Picture Sources: Tesla/screenshot

As we talked about above, Tesla confirmed off two coated automobiles in the course of the presentation, hinting at easy methods to construct its next-generation automobiles on a totally totally different platform design. A big a part of this design is constructing primarily based on automation to scale sooner and cheaper.

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

This implies extra people and robots can have room to work on separate elements of the automotive, Baglino stated, relatively than hauling heavy objects right into a central construction. They’re subassemblies the place the entrance, rear and seat ground are mounted individually on the manufacturing unit ground after which put collectively within the closing meeting.

“To extend the dimensions of electrical automobile adoption to the orders of magnitude that we simply confirmed you, we have to make constraints a part of the answer,” he stated. “It ends in a greater than 40% discount in footprint, which implies we are able to construct factories sooner, with much less capital expenditure and extra output per greenback.”

Whereas this may increasingly sound good in idea, factories are harmful locations and accidents can happen as extra individuals work in nearer quarters.

Neither Baglino, Musk nor head of design Franz von Holzhausen offered further particulars in regards to the next-gen automobiles. One trace: In response to Baglino, this next-gen design can be used on the Cybertruck.

uncommon earth parts

Picture Sources: Tesla/screenshot

As a part of Tesla’s next-generation design, the corporate is creating a brand new propulsion unit it says can be extra scalable, largely as a result of it’ll ultimately remove using uncommon earth supplies.

“We designed our subsequent drive unit to make use of a everlasting magnet motor, utilizing no uncommon earth supplies,” stated Colin Campbell, vice chairman of powertrain engineering. In idea, these financial savings may very well be handed on to the buyer to make a extra accessible and reasonably priced EV.

Tesla stated it’ll use 75% much less silicon carbide in its subsequent drivetrain with out sacrificing the automobile’s efficiency or effectivity. The brand new drivetrain can be suitable with any battery chemistry, which might give Tesla extra flexibility in its battery provide, Campbell stated. Lastly, Tesla’s new powertrain manufacturing unit is seemingly 50% smaller than the present manufacturing unit in Austin, which Campbell stated means EV manufacturing will scale sooner.

warmth pumps

The third a part of Tesla’s Grasp Plan Half 3 is to change residence, enterprise and industrial heating to warmth pumps. A lot of this portion of the presentation was a Local weather Know-how 101 on the unwell results of standard heating programs and the way warmth pumps might help. Musk stated that in some unspecified time in the future Tesla could think about making warmth pumps for the house to assist resolve this drawback.

Tesla already manufactures warmth pumps for its vehicles, so growth into properties would not be too removed from left area. However you probably have a fuel or liquid gas heater, the excellent news is you do not have to attend for Tesla to switch it. Many different corporations are already doing this, together with Sealed and BlocPower.

Charging and power storage

Picture Sources: tesla

Tesla broke down the actual fact sheet with some bulletins and some tips on the way forward for EV charging and power storage companies. Most concretely, the automaker has formally unveiled the Magic Dock, an improve to non-Tesla automobiles at Tesla’s charging stations. Making the expertise obtainable is Tesla’s billions of federal subsidies.

Tesla additionally stated in July that it’ll add a $30 “limitless in a single day at-home charging” plan to Tesla Electrical. Tesla Electrical, an invite-only electrical energy tariff, is obtainable solely to Powerwall homeowners in sure areas of Texas. there is a retail option. Tesla added that it goals to develop its electrical plan into different areas – “market to market, as we method Tesla insurance coverage.” The corporate didn’t supply a selected date.

Later, the automaker stated it’ll launch new power storage merchandise in 2023. A graphic proven to buyers confirmed new megapack and powerwall designs, once more hidden underneath image curtains. Take this with a number of salts; Tesla has a historical past of lacking its personal deadlines.

Robotic

Picture Sources: Tesla/screenshot

Tesla revealed a bit extra about its humanoid robotic, Optimus, and posted a video exhibiting the 2 robots slowly constructing one other bot – an enormous step up from the prototype Tesla confirmed off at AI Day final October.

As ordinary, Musk famous that Optimus can be considerably extra useful than the automotive a part of issues. Optimus was educated utilizing the identical synthetic intelligence that educated Tesla’s Autopilot and FSD, and Musk detailed how a lot of the Optimus {hardware} was taken from Tesla’s vehicles.

“The actuators at Optimus are all custom-designed Tesla actuators,” Musk stated. “We designed the electrical motor or gearbox, the facility electronics, in fact the battery pack and every part else that goes into the Optimus. The identical crew that designed the groundbreaking electrical motors on the Mannequin S Plaid additionally designed the actuators on the robotic.”

What which means, Musk stated, is that Tesla has the instruments to deliver a real humanoid robotic product to market at scale. Now it is only a matter of timing. And in addition, apparently, what would be the ratio of people to humanoid robots. Musk thinks that robots can be greater one by one, as they can be utilized in properties, industrial use instances, and extra.

It is not fully clear how the robotic matches into Tesla’s Grasp Plan Chapter 3, which focuses on a sustainable power future for Earth.