While much of the focus regarding Tesla (NASDAQ:TSLA) is currently centered on the company's upcoming Model 3, which is slated to begin deliveries in July, Musk said the company has some other products in the works.
Here's a look at what Tesla CEO Elon Musk said about the company's product road map during the electric-car maker's annual meeting this week. Musk shares some insight about the Model 3, the upcoming Tesla semi-truck, the Model Y, and a mystery product.
1. Model 3
The Model 3, of course, is well-deserving of its immense attention from investors. With Tesla planning on the vehicle's demand and production to help take the company from producing around 100,000 vehicles per year today to 500,000 next year, the $35,000 vehicle is critical to Tesla's success.
Here's what Musk said about the Model 3 during the annual meeting:
- Tesla is on track to deliver the first-production Model 3 in July.
- The Model 3 configurator will go live around the end of July.
"The initial configurator will be very limited," Musk noted.
"This is critical to achieving a rapid production ramp," he added, admitting that Tesla made the mistake of launching its Model X SUV with "way too much complexity" right from the beginning. "It was very foolish," Musk said.
Specifically, the configurator will have only two options: wheel size and paint color.
- Customers who make a Model 3 reservation today will likely have to wait until about the end of next year until they take delivery.
Since Tesla has already garnered around 400,000 deposit-backed reservations for Model 3 (which are increasing every week), this suggests Tesla expects to deliver around 400,000 Model 3 vehicles or more before the end of 2018 -- a huge jump from Tesla's 2016 deliveries of under 80,000 units.
2. Tesla semi
Tesla's semi is still on schedule for a September unveiling, Musk said.
Further, Musk said the company is working with large contractors and has already shown prototypes to them. "And they all love it," Musk noted. "And they just want to know how many they can buy, and how soon."
We're getting [the large truck contractors] closely involved in the design process. So the biggest customers of the heavy-duty Tesla semi are helping ensure that it is specified to their needs. So it's not a mystery. They already know that it's going to meet their needs because they told us what those needs are. So, it's really going to be a question of scaling volume to make as many as we can.
3. Model Y
Musk said he is "really excited" about the Model Y, which is Tesla's next consumer vehicle in its product road map after the Model 3. Here's what Musk said about Tesla's plans for the vehicle.
- It will be built on a new platform.
I think we made a mistake in trying to derive the Model X from the Model S platform. It would have just been best to design an SUV the way a SUV should be designed. Design a sedan the way a sedan should be designed. Otherwise, you're just trying to shoehorn something in that just doesn't make sense.
Citing another reason for building the Model Y on its own platform, Musk said there are lots of other major manufacturing improvements that can be done that would enable Tesla to build vehicles with "substantially less" capital expenditures"
- It will likely start delivering to customers in 2019.
- Demand for Model Y is likely to exceed demand for Model 3.
Greater demand for the Model Y would be quite a feat, considering the impressive level of demand for the Model 3, despite very limited marketing.
4. A mystery product
Beyond the Model 3, Model Y, and Tesla's semi, there's apparently an unannounced product that will soon be unveiled.
"I would just really recommend showing up for the semi-truck unveiling," Musk said. "Maybe there's a little more than we're saying here."
Perhaps Tesla will unveil an additional product alongside the Tesla semi. Your guess is as good as mine as to what that might be.
Clearly, Tesla investors may want to stay tuned to the company's product events in the coming months.