Tesla Q2 2023 Update: Master Plan 3 Progress

Tesla is doing a lot of good in this world, much of which was shared in the Tesla Q2 2023 Update on July 19, 2023. I hope you enjoy this article, and that it leaves you with optimism & hope for the future!

(Austin, Texas) On Investor Day 2023, Elon Musk and the Tesla team explained how a global sustainable economy is within reach through these six actions:

1. Repower the Existing Grid with Renewables

2. Switch to Electric Vehicles

3. Switch to Heat Pumps in Residential, Business & Industry

4. Electrify High Temperature Heat Delivery and Hydrogen Production

5. Sustainably Fuel Planes & Boats

6. Manufacture the Sustainable Energy Economy

I’m confident that many companies around the world are making progress towards these actions and I believe Tesla is showing and leading the way!

REPOWER THE EXISTING GRID WITH RENEWABLES

Success is imminent in this arena. Thus far, ½ million Tesla Powerwalls have been installed on homes by customers. I personally installed 3 Powerwalls recently and am excited to be a part of what will make Texas become a strong force in the energy economy. I believe that being solid in energy, or defying the odds in these times of climate extremes, means Texas can lead. Last year, I spoke to the ERCOT board of directors in Texas, urging the leadership to do everything they can to promote Virtual Power Plants (VPPs) in Texas. I watched the Tesla Energy team spend years getting to the point where they are now in Texas. Tesla Electric started in Texas and will one day reach to all states.

VPP regulatory challenges are hard, as mentioned during the Tesla Q2 2023 Update, and that cannot and does not stop Tesla Energy from meeting the challenges. The best case for VPPs is they are much cheaper and much faster to respond to grid weakness than traditional fossil fuel peakers.

ENERGY AND SERVICES & OTHER BUSINESSES

Tesla has deployed 3653 MWh of energy storage Megapacks. This is an incredible 222% increase over last year, where 113 MWh were deployed. This is a testament to the incredible work of the Megapack manufacturing plant in Lathrop, California.

The current Tesla Electric pilot program for charging for Model 3 owners will expand to all Tesla owners in Texas later this year.

SWITCH TO ELECTRIC VEHICLES

When looking at the current business, Tesla’s number one priority is investment, and that includes investment AI and capacity expansion. The second top priority is to maximize volume in a way that can support expansion.

Has volume been expanding? Yes, Elon Musk thanked Tesla owners for making the Model Y become a best-seller over cars like the Toyota Corolla. This is important, given Tesla is just getting started with production at scale because Tesla will maximize volume in a way that can support even more expansion. Tesla had the best-ever vehicle production and deliveries in a single quarter, with a total of 466,140 deliveries, and they are just getting started!

— Remember, in Q2-2022 (just 12 months ago), there were a total of 254,695 vehicle deliveries.

To accelerate the switch to EVs, Tesla makes Full-Self driving (FSD) software and hardware available to other OEMs. It is now known that Tesla is in serious talks with another OEM to license their FSD software and hardware. This is exciting news as it means it will make that other carmaker an alluring competitor to other traditional gasoline cars.

SUPERCHARGING AND THE NACS

As you may know, Supercharging in the Tesla Network is a seamless experience. The Tesla Charging standard – or the “NACS” is part of Tesla’s way to help accelerate the EV revolution. Many other automakers have already announced they will adopt the NACS so that their EVs can supercharge in the Tesla Network. This includes Ford, Mercedes, Rivian, Volva, Polestar, and Nissan! You’ll see a level playing field, meaning all EVs will be welcomed.

Q3 is an important time for doing some critical upgrades to all of Tesla’s gigafactories. These upgrades will mean that production rates will improve dramatically.

Elon explained the real-time pulse updates he gets. He said there are challenges in increasing interest rates, making it important to therefore decrease the price of the car to make up for increased interest rates.

ROBOTAXI

Elon Musk carefully explained that “Every car may be worth 5X as much as today due to autonomy.” He compared Robotaxi to Airbnb and discussed a step-change in history.

Elon Musk on vehicle order intake: “Demand has roughly tracked production, which is what we aim for; we have real-time demand and real-time production data.”

Lars Moravy of Vehicle Engineering said there’s a misconception about giga castings, which are in Model 3 and Y. Giga casting is 3X faster and much cheaper. Collision repair is in a closed (in-house) loop so when collisions occur, inserts can be replaced in the castings and this is done often and easily.

Elon commented that the referral program is and will continue to be effective. He also said that many people (potential customers) are not breaking even every month, and macroeconomic conditions are impossible to control. He’s correct, I have spoken to many people who struggle every day to meet bills. Elon is well aware of this and thankfully is engineering solutions for people.

Giga Texas 4680 battery cell production increased by 80% in Q2 over Q1. The Giga Texas team produced over 10M cells, there was a beautiful image shared of the team by the Tesla X account.

Tesla is creating a unique Cybercell to bring energy density and cost improvements. Drew Baglino, SVP of Powertrain and Energy Engineering at Tesla, said Tesla is scaling their Cybercell 4680 battery for use in Cybertruck.

Elon Musk has been key to Cybertruck’s engineering and development, walking the production line and driving it around Austin, Texas. He said Cybertruck is the first truck that we’re aware of that will have four doors, over a 6-foot bed, and will fit into a 20-foot garage. So, it’s sort of biggest on the outside, but it’s even bigger on the inside.”

In more good news, Tesla has seen a reduction in pricing, across the across-the-board for all commodities, such as nickel, cobalt and graphite. This is good not only for Tesla but also for many other companies involved in the transition to a sustainable energy economy.

CONCLUSION

Finding ways to power our world with sustainable energy is necessary for maximum happiness for humanity.

While short-term stock fluctuations are fun to play with, that’s like candy in a candy shop. The serious meat is accelerating the transition to a world economy that is powered by sustainable energy. That’s why this article is about what progress is being made towards Master Plan 3, as communicated by Elon Musk and Tesla leadership at the Q2, 2023 Update.

I am rooting for a continued switch to heat pumps in residential, business & industry, the electrification of high-temperature heat delivery and hydrogen production, and sustainably fueled planes & boats.