All eyes focus Tesla (TSLA) Wednesday with the global EV giant holding its investor day, with the event kicking off at market close. CEO Elon Musk plans to unveil his “Masterplan 3” with analysts forecasting announcements including a new Tesla EV platform, confirmation of a planned factory in Mexico and possible Tesla Model 3 upgrades.
The event, at Tesla’s factory in Austin, Texas, will begin with keynote presentations before transitioning into a Q&A segment with analysts anticipating a major announcement on a new lower-cost EV platform, Cybertruck updates, and other news.
Tesla can also confirm a long-rumoured “Project Highland” Model 3 upgrade. Reuters reported Wednesday that an upgraded Model 3, with an emphasis on lower production costs, will go into production at the company’s Shanghai factory in September. Tesla is also updating the Model Y with changes to the interior and exterior with a production target for 2024, according to Reuters.
“The thing to look forward to this year is the Gen 3 platform, which is key to growth as it will enable cheaper EVs, which should increase volume as demand stagnates and competition intensifies,” Third wrote. Bridge analyst Orwa Mohamad late Tuesday.
Mexican President Andres Manuel Lopez Obrador also announced on Tuesday that Tesla plans to build a factory in Monterrey. Further details will be released Wednesday, the Wall Street Journal reported.
Tesla has repeatedly teased an EV that would sit around $25,000. CFO Zachary Kirkhorn said on the Q4 earnings call that the “next generation vehicle platform” was a priority. This could mean the cheaper, elusive Tesla Model 2 could go public on March 1.
Tesla stock performance
TSLA shares rose 2.4% to 200.79 during Wednesday’s market trading. Tesla shares fell 0.9% to 205.71 on Tuesday, after rising 5.5% on Monday. Stocks arguably have a cup-and-handle pattern dating back to early November (or too low a handle in a base from September). That would suggest a buy point of 217.75.
However, Tesla stock could see potential resistance at its 200-day moving average, currently just above 221.
Tesla shares have doubled from the bear market low of 0f 101.81 on January 6. Much of that reflects the rush of Tesla investors. This follows a historical pattern of TSLA stock anticipating similar events. In 2016, Tesla stock advanced 22% for a month on Musk’s second “Master Plan” announcement on July 20, 2016.
“The biggest risk for Tesla is refreshing their product lineup and becoming less dependent on the Model 3 and Model Y for growth. The rumored $25,000 car would give Tesla a huge boost as more competition comes through the economy segment, but cost, execution and the timeline are big question marks,” Mohamad added on Tuesday.
Tesla Investor Day and Master Plan number 3
Tesla’s first Master Plan, unveiled in August 2006, presented the company’s goal to build a broad range of electric cars. Ten years later, Musk unveiled his second “Master Plan.” That focused on self-driving power and battery energy storage systems.
Musk says his “Master Plan 3” is about a “pathway to a fully sustainable energy future for the Earth.”
However, the billionaire CEO was mostly mum on details. Musk said on Wednesday that March 1 will be an event for investors “in Earth.” His comments came during the unveiling of plans for a new Tesla Engineering headquarters in Palo Alto.
Musk added that March 1 will be about “explaining how we get to a fully sustainable energy future and people need to have optimism and hope for the future.”
Futures fall after the market closes badly; Tesla is getting ready for Investor Day
Artificial intelligence may also be on the cards with Musk tweeting on Tuesday that he will be working on an “anti-woke” AI chatbot. Tesla can discuss its plans to expand the Nevada Gigafactory to make the Semi Truck and 4680 battery cells.
The EV giant is likely to unveil HW4.0, its latest driver assistance hardware, including better chips, more cameras and the return of radar. Musk said all Tesla EVs as of 2016 were “hardware ready” for full self-driving.
Tesla would also discuss future factory expansions, along with growth in the solar and energy storage business. Wall Street is also forecasting announcements regarding actions to secure commodities, including lithium.
Checking the lithium supply
Another possible initiative is a possible bid Sigma lithium (SGML), according to Bloomberg. Sigma Lithium has no sales, but is about to begin commercial production at its Brazil site in April. SGML shares rose 16% on the news on Tuesday.
Tesla has already made progress on construction of a lithium processing facility in Texas, the first of its kind in the US. Tesla has confirmed plans to invest $365 million in the lithium plant. The company has said that commercial production could start in late 2024.
TSLA ranks fourth in IBD’s Automakers industry group. Tesla stock has a 73 Composite Rating of 99. The stock also has a 27 Relative Strength Rating. The EPS score is 99.
Follow Kit Norton on Twitter @KitNorton for more coverage.
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