The growth needed to transition to electric vehicles
Tesla
Elon Musk's new master plan isn't ready yet. Tesla's CEO was asked about the company's five-year plan and his updated master plan at the stakeholder's meeting in August. While he didn't get into specifics, Tesla's head of investor relations reportedly did spill the beans at a Goldman Sachs invite-only tech conference. Martin Viecha gave one of the world's largest investment banks plenty of details on how the company will look and what will be accomplished by 2027-28.
Business Insider quoted the Tesla employee stating, "EV architecture is so different from internal combustion engine, it allows for a third revolution in automotive manufacturing."
Undoubtedly, Tesla has led the way in the electric vehicle space. However, that space is getting more competitive, with longer-established auto manufacturers ramping up electric vehicle production.
The audience of investors wanted to hear how Tesla would compete. Viecha repeated numbers from Tesla's second quarter earnings call. The cost of building the product has dropped by more than half in the last seven years.
He said in 2017, it cost $84,000 to make one of their vehicles, but it is now down to $36,000. Incredibly, those cost savings were not from batteries or supplies but from better vehicle designs and optimizing factories. Viecha said the cost per car manufactured is the most critical metric to monitor. It dictates how many vehicles can be built and just how big Tesla can become. He clarified that the company will continue to find ways to lower production costs.
With the falling cost of production, the interest in a less expensive Tesla continues to rise. While the term, Model 2 (Details on Model 2), was not reported, it's no secret that this has been on the company's radar for some time. Viecha says the company wants to be a high-volume automaker. Therefore, a more affordable option is necessary to broaden the portfolio.
However, the demand for the Model 3 and the Model Y is still so high that a new Model is not needed any time soon. That's an essential point because the head of investor relations said that a cheaper Tesla would be used in the Robotaxi (everything we know about the Robotaxi) production.
Of course, the investors needed some reassurance about Full Self-Driving. Musk has publicly stated that FSD can make the company worth a lot. Viecha said that supervised FSD is underway. He said more than 100,000 people are using FSD in the United States. However, he reiterated the point that the only way the system can improve is by collecting data.
Also, interesting to note that Viecha assigned generation numbers to Tesla products. The first generation is the Model S and Model X. While the second generation is the Model 3 and Model Y. He referred to Robotaxi and presumable the Model 2 as the third generation. However, with the Tesla Semi ready to roll and the Cybertruck coming next year, perhaps he wants to revise the generation breakdown for the next investor meeting.
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Tesla has issued a strong denial in response to a Wall Street Journal report (Paywall) which claimed that Tesla’s Board of Directors had initiated a search for a new CEO.
In a statement posted directly on Tesla’s X account, Board Chair Robyn Denholm denied the report unequivocally. As per the statement, Tesla’s board did not reach out to recruiting firms in search of a new CEO.
Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company.
This is absolutely false (and this was communicated to the media before the report was published).
The statement reaffirmed the board’s position on Tesla’s current leadership and that the board is highly confident in Elon’s ability to continue executing Tesla’s plans and future growth.
This confidence behind Elon follows his recent statements made during the Q1 2025 Earnings Call that he would be stepping back from the Department of Government Efficiency (DOGE) in the coming days and significantly reducing time spent there. Instead, he would be returning to focus on Tesla’s operations and the upcoming deployment of Robotaxi.
Shortly after the denial was posted, Elon Musk also commented on the report, specifically tagging the Wall Street Journal and criticizing their handling of the report.
It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors! https://t.co/9xdypLGg3c
We’re glad to see Tesla and Elon set the matter straight, but there could have been a better way to spread this message and maybe even prevent the report from WSJ from going out.
We recently published an opinion piece on why Tesla needs its PR team back, and this specific incident is a good example. Relying solely on platforms like X for critical corporate communications - and in this case, late at night (1 AM EST), with limited reach outside the existing follower base seems like an ineffective way of communicating important company information.
We’d love to see Tesla really put some thought into managing its image, as it seems that several recent reports from major financial news organizations have apparently been wrong.
Either way, the board’s stance is clear - there is no active search underway, and Elon has the full backing and support of the board to lead Tesla toward the future.
Tesla’s Megapack is rapidly becoming a key component in energy storage and grid modernization efforts worldwide. Though often associated with powering AI infrastructure or industrial operations, Megapack’s true strength lies in its ability to stabilize electrical grids during blackouts and brownouts.
In a recent behind-the-scenes reveal, Tesla showcased the impressive scale of Megapack production at its Mega Lathrop facility, along with real-world examples of how these systems are already transforming energy resilience across the globe.
Mega-Scale Megapack
Tesla is operating the largest utility-scale battery manufacturing facility in North America at Mega Lathrop, which has the capacity to produce 10,000 Megapacks annually. Thanks to a highly automated assembly process that uses over 30 welding robots to assemble the core Megapack structure. This is the largest manufacturing fixture Tesla uses— likely to only be matched by future developments at Mega Shanghai.
Tesla uses a highly automated powder coating process, utilizing over 90 robotic paint atomizers to apply more than 140 pounds of powder coat to each Megapack. This process delivers Tesla’s signature white reflective finish, engineered for long-term durability and corrosion resistance that lasts up to 20 years, even in harsh coastal or high-heat environments.
All of Megapack’s power electronics are designed and built in-house. Each Megapack uses 24 battery modules, electrical busing, and thermal management systems to ensure grid reliability and help to maximize energy density. The architecture pairs each inverter with a battery module to maximize energy availability and overall uptime. Plus, before each Megapack ships its way across the world, Tesla performs rigorous on-site quality control to ensure that the installation process is as seamless as possible.
Watch Tesla’s video of the manufacturing process below:
Megapack’s Real-World Impact: Hawaii
The core purpose of Megapack is to make power grids more stable and resilient while also reducing reliance on dirty peak power plants like coal. They achieve this by balancing energy supply and demand in real-time, smoothing out fluctuations from variable renewable sources like solar and wind, which helps to prevent grid shortages.
Hawaii actually provides the most real and down-to-earth example of Megapack’s impact. In mid-2024, the Kapolei Energy Storage facility in Hawaii came online. Hawaii utilized 258 Megapacks with a combined capacity of 565 MWh, successfully replacing the state’s last coal-fired power plant. This single facility can power approximately 20% of Oahu’s peak electricity needs by itself for approximately 4 hours.
The project is more than just removing coal plants, though. It serves as an example of Megapack’s grid integration and grid forming technology. The Kapolei Energy Storage facility can manage grid fluctuations caused by weather changes impacting renewable energy, improving stability and preventing blackouts. Thanks to their rapid inverter response times of under a millisecond, Megapacks participate in complex grid balancing activities, including fast frequency and voltage support, which helps to maintain grid balance throughout the day. Beyond that, Kapolei also allows Hawaii to black-start the grid in case of a major power outage that takes out a large section of the grid.
This functionality would be especially useful in Spain, where black-starting the grid took over eight hours recently and is still disrupting the day-to-day life of people there.
You can check out Megapack’s real-world impact in this video from Tesla below:
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