Mr Viral
The American company Tesla has presented its new “master plan,” and for the first time, it does not include the development of new car models. Elon Musk is putting all his cards on robots and artificial intelligence, leaving the business that made Tesla great in the background. This decision could change the industry forever.
Tesla launched the new Model Y Juniper this year, the SUV’s first redesign since its first release in 2020. Although the competition has improved and, in some respects, even surpassed them, the Model Y remains one of the most complete packages in terms of price and performance.
But all this, it seems, does not excite Musk much. Except for the troubled Cybertruck and a longer variant of the Model Y that’s only available in China, Tesla hasn’t launched an all-new electric car in the past five years.
Musk himself has stated on several occasions that his priority is no longer cars but robotaxis and robots. According to him, autonomous technology will transform Tesla into a company with a value of ten billion euros, a milestone that will be “remembered in a hundred years.” However, the reality is that almost all of Tesla’s current revenue comes from car sales.
The Master Plan IV
The company released its “Master Plan IV” in September, a document that does not mention any new electric cars in development. Instead, it describes a future dominated by Tesla-designed robots that would free us from our daily jobs. When cars are mentioned, it’s only on the subject of robotaxis or the batteries that power them. In short, America’s largest electric car manufacturer no longer wants to make cars after all.
To date, Tesla has presented only three master plans in its more than twenty-year history, and all have shaped the company’s direction. The first, from 2006, outlined the strategy he would later follow: start with an expensive electric car and reinvest the profits in more affordable models. The Master Plan, part two from 2016, hinted at the arrival of an electric SUV (the current Model Y) and a pickup truck (Cybertruck).
Tesla’s total commitment to artificial intelligence comes with a price: it is neglecting its core business, electric cars. Musk himself even said that it would be “absurd” to launch a €25,000 car if it is not fully autonomous. That’s why Tesla has abandoned models that could sustain its revenues while striving for full autonomy in a market with increasingly competitive and sophisticated vehicles.
If the master plan fails, Tesla will have little room to maneuver. Their sales are already falling globally, hit hard by both Musk’s public image and determined pressure from Chinese manufacturers who are launching more competitive electric models. And the plan does not offer a clear way out of this situation.
Musk knows firsthand how tough the car business is. It requires huge investments, and the profit margins are extremely small. Tesla giving up on electric cars would be bad news for everyone. Despite its flaws, it’s a company that has pushed much of the industry to accelerate electrification. However, if their leader takes a step back, it will be the end of an all-too-brief era that nevertheless left a deep mark.
Also See: Economists Figure Out The Cost To Tesla Of Elon Musk’s Remarks And Actions
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