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Think Tesla was audacious in its commencement decade? CEO Elon Musk's "Master Program, Function Deux" calls for Tesla to build electric crossovers, sport utility vehicles, pickup trucks, buses, and long-booty trucks. Electric vehicles, all of them. The plan also calls for Tesla to forge ahead on autonomous driving — no surprise there — and develop a car-sharing programme for self-driving Teslas so owners can get some of their money back.

It doesn't take a rocket scientist to come across Musk is pushing a bold plan that requires lots of capital and more than breakthroughs in bombardment cost and efficiency at a time when Tesla is already stretching to meet its goals of jumping from l,000 to 500,000 vehicle sales past 2018 and Musk is trying to push through a merger of Tesla and SolarCity.

World Premiere Freightliner Inspiration Truck

Autonomous big trucks, smaller on-need buses

World Premiere Freightliner Inspiration TruckIn the "Part Deux" master plan (its real name) on the Tesla blog, Musk writes that today "Tesla addresses 2 relatively modest segments of premium sedans and SUVs." Tesla expands with the $35,000 Tesla Model 3 in belatedly 2017, a crossover sized and prized like a Model 3, and and so "a new kind of pickup truck."

Musk says there are "ii other types of electric vehicle needed: heavy-duty trucks and high rider-density urban transport." He said both are in development and should exist unveiled next year. Musk sees them every bit autonomous vehicles. Others are working on autonomous combustion engine trucks, including Daimler's Freightliner division (photos in a higher place, right). Musk says the Tesla Semi "will deliver a substantial reduction in the cost of cargo transport, while increasing safety and making it really fun to operate." Fun to operate? Tesla is an upbeat company.

Information technology's unclear if Tesla would pack in batteries equivalent to the 200-300 gallons of diesel in an over-the-road truck, make them quick-change, or develop huge improvements in bombardment efficiency.

The Tesla bus would as well be democratic. If so, Musk writes, "It  will probably brand sense to compress the size of buses and transition the role of bus commuter to that of fleet manager. … [with the buses] matching acceleration and braking to other vehicles, thus avoiding the inertial impedance to polish traffic menstruum of traditional heavy buses. Information technology would besides take people all the way to their destination. Fixed summon buttons at existing passenger vehicle stops would serve those who don't accept a phone."

Ford Dynamic Shuttle vanTesla's non-insignificant contribution here is the electrification and automation of the downsized bus, something perhaps sized on the order of a Mercedes Sprinter or Ford Transit. Ford'south Dynamic Shuttle Service concept (photo right) is built around ride optimization software and offers semi-custom destinations, meaning the rider might walk a block or two at each cease of the ride, putting it betwixt a city omnibus and taxi on convenience and cost.

The new Tesla plan backs off from a smaller (and cheaper) Tesla EV than the Model 3. "A lower toll vehicle than the Model 3 is unlikely to be necessary," Musk says. If people want a less expensive Tesla, they tin rent it out when they're not using information technology.

TeslaX_interior_layouts

The Tesla manufactory: "auto that makes the machine"

To move to a sustainable future, Musk says, Tesla needs to scale up production volume quickly and focus on the "the machine that makes the motorcar," otherwise known equally the factory. He adds:

A first principles physics analysis of automotive production suggests that somewhere between a v to 10 fold improvement is achievable by version iii on a roughly 2 year iteration cycle. The commencement Model three factory machine should be thought of every bit version 0.five, with version i.0 probably in 2018.

Autonomous driving yields safe

Parts of the Tesla plan touch current controversies, only reshaping today'south issues as waypoints to the longer-term future. For instance, Musk sees the futures of SolarCity and Tesla merging, so the companies should, as well. (That'south making some investors nervous.)

Musk defended Tesla's fractional self-driving Teslas now as a useful learning tool helping motility Tesla to total autonomy and — when used appropriately, meaning not the stuff yous see in stupid YouTube videos — makes today'south Teslas with Autopilot safer than cars without. Autopilot, Musk says, "is already significantly safer than a person driving past themselves and it would therefore exist morally reprehensible to delay release but for fright of bad press or some mercantile adding of legal liability."

Musk cautions that the "software validation" for self-driving will take "much longer than putting in identify the cameras, radar, sonar, and computing hardware." He estimates world regulatory approval will take "on the gild of six billion miles (10 billion km). Current armada learning is happening at just over 3 million miles (5 million km) per day." Musk again defended the term "beta" being practical to Autopilot software as "not beta software in whatsoever normal sense of the word. … It is called beta in order to decrease complacency and indicate that it will continue to improve." When Autopilot becomes 10 times equally condom as the average U.s.a. car, the beta label comes. Right now Tesla says Autopilot cars are approaching 2x the safe of the average car. The overall death rate in automobile accidents now is about one.i per 100 1000000 miles driven.

Master programme in brusk

Musk opened and airtight his ane,500 word program past comparing it with the beginning plan, like this:

First Master Plan (2006)

Create a low volume machine (the Tesla Roadster), which would necessarily be expensive;

Use that money to develop a medium book car (Model Southward) at a lower cost;

Use that coin to create an affordable, loftier volume car (Model 3);

Provide solar ability. No kidding, this has literally been on our website for 10 years.

Office Deux Master Program

Create stunning solar roofs with seamlessly integrated bombardment storage;

Expand the electric vehicle product line to address all major segments;

Develop a self-driving capability that is 10X safer than manual via massive armada learning;

Enable your car to brand money for yous when you aren't using it.

Can Musk make the second decade magical, too?

Analysts were quick to provide feedback. Several noted that it was an ambitious program at a time when Tesla has challenges engineering science new cars and getting quality command improved. Consumer Reports dinged Tesla for quality issues with the Model S even as it connected to say it was the best car they ever tested.

To Tesla and SolarCity, it makes sense to merge the two companies so customers tin exercise 1-shopping for a car, solar panels, and battery storage. Whether buyers see it that way is less certain. Non everyone wants solar panels on their roof and apartment dwellers may not have a place to put them.

Equally happened at the Steve Jobs-run Apple tree, investors may wonder what happens to Tesla Motors if Elon Musk gets hitting by a bus, electric or otherwise. Tesla says it has a deep bench of executives beyond Musk, but it's always a concern for the markets when a single person represents so much of the company's prototype. On the other hand, for most of Tesla's existence, the investors who were rewarded all-time were those who bet with Tesla.