Tesla Master Plan 3: The Compact is Coming!

A lot of new information for 2023 is available on the platforms Teslarati.com and Teslamag.de: The Master Plan 3 contains tabular news about the future model program, in which the Roadster is interestingly no longer listed. A compact model, which is supposed to receive a 53 kWh LFP battery, is to be launched in the future. Above that is the "Midsize" segment with Model 3 and Model Y, which will likely switch to LFP cells in the long-range models – here Tesla specifies 75 kWh capacity. Only the "Large Sedans, SUVs & Trucks" will receive an approximately 100 kWh NMC battery with a high nickel content. Tesla also aims to be aggressive in pricing with the compact model: Thanks to a new, extremely cost-effective platform on which up to four million units can be built annually.

Vans and buses are also included in the table – the Roadster is no longer listed

Interesting: In this table, Tesla also mentions a "Commercial/Passenger Van" as well as a Tesla Bus: The van is supposed to use the same battery as the "Large Sedans, SUVs & Trucks," while a 300 kWh LFP battery is specified for the bus.

In the USA, Tesla has once again lowered prices for all models. Even a new entry-level version of the Model Y is available in the US configurator. It is suspected that this version is equipped with a battery from Tesla's own 4680 cells. With an acceleration of 5.0 seconds to 60 mph (96 km/h), the new base Model Y is almost on par with a Long Range. With 279 miles EPA range (449 kilometers), the range specification corresponds exactly to the "Model Y AWD" that Tesla reported to the EPA in March 2022. It is priced at $49,990, $3,000 less than the Long Range variant, which now starts at $52,990 in the USA after the recent price drop.

For the Model 3, Tesla indicates in the US configurator that due to the new funding rules, only $3,750 instead of $7,500 tax credit will be available from April 18, 2023 – as the battery comes from China. There is no such note for the Model Y Long Range, suggesting that the Model Y's battery cells come from the USA, which means that the vehicle with Tesla's own 4680 cells should continue to receive the full $7,500 tax credit.

It is not clear from the reports why Tesla has once again lowered prices in the U.S. What is certain is that the production of the vehicles is significantly cheaper (though not more sustainable) than that of the competition, and Tesla could be "buying" market share by passing the reduced costs on to customers. Currently, demand seems stable, and the production of the Model Y is expected to increase further during the second quarter of 2023 both at Giga Texas in Austin and in Grünheide: In Grünheide, Tesla is now producing 5,000 vehicles per week; in Texas, it is still around 4,000 units per week, but production is also expected to be increased to 5,000 vehicles there.

The top management is being discreetly restructured

There are also changes in the top management: China head Tom Zhu is referred to in the documents for the annual general meeting taking place in May as Senior Vice President Automotive – among the Executive Officers, Zhu is listed there as the fourth member of the leadership team. This means he is no longer only responsible for China, procurement, and production, but for all car plants and projects. Additionally, Tesla co-founder and former Chief Technology Officer (CTO) JB Straubel is set to join the Board of Directors. He has now been nominated for this position, but must officially be elected to the board by the annual general meeting. Straubel is the CEO of Redwood Materials and, through a partnership with Panasonic, indirectly supplies Tesla with recycled copper foils for anode production in Giga Nevada.

What does this mean?

Tesla is consolidating, discreetly restructuring, and seems to be massively pushing forward the compact car. After the bumpy starts of the models and factories, production is now running at full speed and cheaper than ever. The disadvantage for customers is that Tesla consolidates huge modules (e.g., the entire rear end of the Model Y in one casting, 4680 cells glued together and therefore not replaceable individually), which is not appreciated by insurers. What is clear is that Tesla aims to rise to the very top in the automotive sector – for which a compact model is indispensable. Whether the extremely lean production will be advantageous in the long term is doubtful, because defective Teslas with their "Giga-modules" are only difficult to repair.