Tesla's investor day was a nearly four-hour marathon filled with insights into the automaker's plans to lead the world to a renewable energy future. From vertical integration to humanoid robots, Tesla executives shared updates on various projects aimed at reducing costs and streamlining production while working toward the company's broader mission. However, investors weren't too thrilled with the lack of any major product announcements, and Tesla's stock price fell. Here's a closer look at the event.
Tesla Elon Musk has always had a vision for the future. This is also why this year the company decided to reveal the news at Tesla's investor day, which we believe will become a tradition. The company has been dedicated to the production of electric vehicles (EVs) since its inception, and the ultimate goal is to reduce global dependence on fossil fuels. Tesla's recent investor day was an opportunity to see how Tesla plans to achieve this goal, focusing on operational efficiency, cost reduction and new products.
Musk and other executives have made it clear that they are not content to just make cars, but have a much bigger mission in mind. The event showcased how Tesla is working to build a sustainable energy future for the Earth and highlighted the company's product portfolio, which includes the Model S, Model X, Model Y and Model 3, as well as the Tesla Semi and Cybertruck.
The big news, however, was that Tesla plans to increase production to an ambitious 20 million vehicles per year, which seems impossible given that the company only produced 1,369,611 and delivered 1,313,851 vehicles in 2022. However, Tesla believes it can achieve this goal by increasing production efficiency, adding more models to its portfolio, and building new factories in addition to expanding existing ones.
In order to achieve its goals, Tesla is working towards more vertical integration. The company already makes its own components and chips, but Tesla is now developing its own microprocessors for high-performance electronics that will cut costs in half. The company is also investing in lithium refining and will soon build a new refinery in Texas. The goal is to reduce the cost of producing electric vehicles while simultaneously increasing efficiency, while striving for a more sustainable energy future.
Besides, they will Tesla next-generation vehicles built on a completely different platform design that relies heavily on automation for faster and cheaper customization. The idea is to build the different parts of the car independently, painting only what is needed and building them once and only once. This approach will result in a factory footprint reduction of more than 40 %, enabling faster factory construction with less capital expenditure and higher output per unit dollar.
Tesla plans to revolutionize the heating industry with heat pumps and move away from traditional heating systems based on gas or oil heaters. The company already produces heat pumps for its cars, and expansion into homes could be the next step.
The biggest surprise was the announcement of the new humanoid robot Optimus. The robot is still in development, but Musk has teased that this part of Tesla's business could be worth significantly more than the car business. The robot is trained using the same artificial intelligence that uses Tesla's Autopilot and FSD, and many of the hardware components come from Tesla cars and co-development. Musk believes that robots will eventually outnumber humans as they can be used in industry and as home assistants. Everyone will have their own robot. And the ratio of humans to robots will be 1:1. But that future is not so far away.
Tesla Investor Dayv provided insight into the company's broader mission to drive the shift to renewable energy. While there were no major product announcements, the day showcased Tesla's commitment to cutting costs and simplifying manufacturing while working toward a greener future. Tesla's focus on vertical integration, lithium refining and manufacturing automation will be key to achieving their ambitious goal 20 million vehicles per year. And with plans to revolutionize the heating industry and introduce a humanoid robot to the market, Tesla is expanding beyond just making cars. Despite the lack of major announcements, the event offered a clear look at Tesla's broader mission and its commitment to making the world a more sustainable place. We also saw for the first time an accurate glimpse of the cohesiveness of the Tesla departments and the shared mission, which works like science fiction from an outside observer.
