Tesla will cut assembly costs by half in future generations of cars, engineers told investors, but Chief Executive Elon Musk did not unveil when it will debut a much-awaited affordable electric vehicle.
Shares fell more than 5% in after-hours trade following the company’s investor day from its Texas headquarters.
More than a dozen Tesla executives led by Musk discussed everything from a white-paper plan for the globe to embracing sustainable energy. They also discussed the company’s innovation in managing its operations from manufacturing to service.
The presentation featured an array of senior engineers, including the new global production chief, Tom Zhu, a nod to Tesla’s attempt to show the depth of its executive bench beyond Musk.
Musk had been expected to lay out a plan to make a more affordable electric vehicle (EV) that would broaden his brand’s appeal and fend off competition.
Executives said Tesla’s next-generation platform would include more than one vehicle built in standardized factories, but Musk brushed off questions about models in mind.
Tesla’s chief financial officer, Zach Kirkhorn, and others underscored their dedication to cutting production costs.
Kirkhorn estimated Tesla must invest six times more than it has to date to hit its long-term target of increasing output to 20 million vehicles annually by 2030, a 10-fold increase from current capacity. The bill could be $175 billion, he said.
The next investment step will be a new Tesla factory in northern Mexico, Musk said, announcing the first plant outside of the United States, Germany, and China.
Musk did not comment on plans to revamp the Model Y sedan next year, called Project Juniper that Reuters flagged in a report or a revamped version of its Model 3 sedan – a project codenamed Highland which Reuters has reported will go into production in September. Design chief Franz von Holzhausen said the Cybertruck pickup is coming this year.
