Tesla Investor Day: What to Expect?

On 1st March 2023 (Wednesday), Tesla Inc shall host a special event, namely Investor Day. According to the official statement of the EV behemoth, investors are expected to learn more about the company’s most advanced production line, long term expansion plans, generation 3 platform, capital allocation and other relevant subjects.

“The path to a fully sustainable energy future for Earth… the future is bright!”
 – Elon Musk, Tesla CEO

Being the third iteration of Tesla’s strategic vision (after the first “Master Plan” and the second “Master Plan, Part Deux”), investors expect to gauge more information about the long-promised $25,000 EV – a much cheaper, affordable EV compared to the average market price. In fact, it has been Musk’s vision to not only launch lower-priced vehicles and become a leading car company, but also set an example for reducing the carbon footprint of the global automotive customer base.

This may refer to Project Highlanda makeover for the existing Model 3 both internally and externally with aims to lowering production cost, improving overall efficiency and eventually stimulating buyers’ interest for the car model. The associated efficiencies (reducing production complexity and shortening production time per vehicle) are what Tesla prides itself on, being the only Western Original Equipment Manufacturer (OEM) to offer one-piece casting for large structural vehicle frame parts.

We expect the EV behemoth shall massively implement its Giga Presses technique and 4680 structural battery pack for its newest version of the Model 3.  Giga Press has had a successful history in its Model Y production prior, that is 10 hours per car – 3 times faster than other EV competitors! Other advantages of Giga Press include reducing the cost of the welding process (as traditional components that require robotic or manual welding will be removed), lowering reliance on robotic welding, maintaining a sustainable and competitive advantage, etc.

In addition, the 4680 battery cells offer 6 times more power and improve the range of electric vehicles by nearly 16%. Its faster, simpler manufacturing process and fewer components lead to cost effectiveness and production efficiency. All in all, while the Generation 3 platform will be the primary focus for now, Musk may also reveal more information regarding the Cybertruck (still unsure when it will finally arrive but maybe “sometime in 2023”, or 2024). The Next Generation platform may be another highlight, in which it is rumored to be producing EVs at half the cost of the Model Y and Model 3 (mass volumes expected to arrive in 2025 or later), and it will also form the basis for the company’s robotaxis in near future.

Technical Analysis:

The #Tesla (TSLA.s) share price has ticked up higher since the beginning of this year. In the previous quarter, it plunged about 54%. The gains could be contributed by “better than feared” earnings results and Musk’s optimistic outlook for production and demand in 2023 (2 million cars?). The asset remains pressured below 100-week SMA, with $152 serving as the nearest support level to watch. Closing below this level may suggest bearish continuation, towards the next support at $63.50. On the other hand, $321-$330 serves as the nearest resistance zone, followed by $560 and the 100-week SMA dynamic resistance.

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Larince Zhang

Market Analysis

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