Tesla Investor Day 2023 — Will This Change All the things?


Wednesday, March 1, 2023, could also be an historic day for humanity. That’s the day Tesla plans to unveil is Grasp Plan Half III. The Nice And Highly effective Musk has promised will probably be a blockbuster occasion.

Hypothesis is rampant that a part of Investor Day 2023 would be the announcement of a third-generation Tesla electrical automobile platform which can signify a step change in car manufacturing. In truth, it may very well be a tidal wave occasion akin to Henry Ford’s authentic concept to make automobiles on an meeting line utilizing standardized components. The rumored new chassis would make use of injection molded structural parts that may slash the prices of manufacturing and make Tesla essentially the most worthwhile automaker in historical past. It already makes 9 instances more cash on every automobile offered than Toyota does.

Final month, Morgan Stanley auto sector analyst Adam Jonas, who has at all times been a Tesla champion, stated in a analysis notice that Tesla is now his prime automotive inventory decide. “Tesla’s current worth cuts are simply the most recent signal the EV market could also be getting into the ‘shake-out’ section,” he wrote earlier than including the EV market is shifting to an period of under-supply to potential over-supply, marked by shorter supply instances, worth cuts, and falling used automobile values. “[Tesla] nonetheless affords roughly 50% upside at materially decrease execution and dilution threat vs friends,” the notice stated.

Writing in The Pushed, Daniel Bleakley says the issue that may make Tesla king of the mountain just isn’t decrease battery costs, it’s Tesla’s dramatically decrease prices of manufacturing. “Increasingly proof means that Tesla’s Investor Day occasion this week will mark the start of a brand new period in automotive manufacturing. One by which EVs usually are not solely less expensive to run and preserve than petrol and diesel automobiles, but in addition cheaper to make,” he says.

Price Of Items Bought

Within the run-up to Investor Day 2023, Adam Jonas factors out that Tesla’s present price of products offered utilizing the second-generation platform that varieties the idea of the Mannequin 3 and Mannequin Y is $39,000 per automobile. He says the Tesla manufacturing unit in Germany is producing 90 automobiles an hour and wishes solely 10 hours to fabricate each. By comparability, every ID. automobile Volkswagen produces in Zwickau requires 30 hours to fabricate. He expects that Tesla on Wednesday will unveil its third-generation platform, which he believes will decrease the price of items offered to round $25,000. (Associated story: Sandy Munro: How Tesla Will get To The $25,000 Automobile)

How is that attainable? By an idea Musk calls “the very best half isn’t any half.” It’s an concept widespread within the laptop business however largely unknown within the auto business. Utilizing high-pressure injection molding machines is a part of it. So is providing only a restricted vary of fashions. Constructing the identical automobiles again and again is just cheaper than constructing a blizzard of fashions with an virtually infinite variety of choices. All that complexity interferes with manufacturing effectivity, which raises prices. Eliminating redundancy and complexity is the motive force of the manufacturing breakthroughs we anticipate to be introduced on Investor Day.

Tesla Investor Day

The primary is the single-body casting approach Tesla has pioneered. In most auto factories, a military of robots welds a whole bunch of components collectively to make what the business calls a “physique in white.” It’s  the naked body earlier than it’s painted and the powertrain, axles, suspension, wheels, doorways, seats, and all the opposite elements that go into making a contemporary car are connected.

Fabricating the body-in-white takes an enormous period of time, house, and cash. Over the previous few years, Tesla has utterly revolutionized this course of with the event of single-body castings utilizing the most important excessive strain die casting machines on the planet. The massive casting machines Tesla has begun utilizing are so giant, the corporate’s supplies engineers wanted to develop a brand new aluminium alloy that might enable the molten steel to circulation into all of the intricate areas of the die earlier than setting.

Adam Jonas says there are three key enhancements these casting machines make attainable.

  • Lowered components saving 10% mass and growing automobile vary by 14%
  • Lowered manufacturing space saving 300–1000 robots and 35% of producing ground house. Mannequin Y with single-body casings makes use of simply 30% of the robots wanted for the Mannequin 3.
  • Excessive productiveness and shorter manufacturing time. 80–90 seconds to finish a component that might take 1 to 2 hours with the normal stamping and welding course of.

Keys To Decrease COGS


Courtesy of Tesla

The second issue is the structural battery pack that Tesla is now utilizing to construct some Mannequin Y automobiles in Texas. Jonas claims the castings, mixed with the efficiencies that may consequence from utilizing structural battery packs, will decrease manufacturing price considerably. He provides that Tesla’s $3.6 billion funding in constructing a brand new battery manufacturing unit in Nevada that may have an annual capability of 100 GWh demonstrates the corporate is already on the best way to reaching the fee financial savings it forecast on Battery Day two years in the past.

“Aside from Tesla, no different EV identify beneath our protection has confirmed to make a revenue on their EVs and a few (Rivian and Lucid) have a supplies) price nonetheless properly in extra of their common promoting costs,” Adam Jonas stated in his current analysis notice. “All people might want to discount, however we don’t suppose all people will be capable to reduce prices and fund the enterprise with out important capital raises.” Morgan Stanley has rimmed its worth goal on Tesla inventory to $220 however that continues to be one of many highest valuations for any auto firm on Wall Avenue. “In a world of deflationary EV pricing, we imagine Tesla can leverage their business main margins and manufacturing scale to develop the market and ‘tax’ the competitors,” Jonas wrote.

The Takeaway

It’s good to have a plan. As that well-known thinker Forrest Gump so famously stated, “Should you don’t know the place you’re going, you’re not prone to find yourself there.” Musk’s well-known first Secret Grasp Plan has succeeded spectacularly. His Grasp Plan Half Deux? Not a lot. It promised an explosion in Photo voltaic Roof installations and the appearance of self-driving robotaxis that Tesla homeowners might use to generate important income, neither of which have materialized.

The expectation is that the the third-generation platform with its considerably decrease manufacturing prices may open the door to the cheaper Mannequin C/Mannequin 2 that many imagine is within the pipeline, despite the fact that Musk insists the corporate already has an excessive amount of on its plate to even take into consideration a brand new lower-priced mannequin. In two days, we are going to know extra as CleanTechnica obsessively covers the Traders Day festivities.


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