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Tesla’s Elon Musk hints that he’s working on a “Master Plan Part 3”

Tesla CEO Elon Musk wears a Plaid Mode jacket at the company's Model S Plaid Delivery Event on June 10th, 2021. (Credit: Tesla)

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Tesla CEO Elon Musk recently revealed something extremely exciting: he is currently working on Master Plan, Part 3. Musk’s Master Plan, two of which have already been published over the years, outlines his primary long-term goals for Tesla, as the company evolves from a simple startup automaker to something much more. 

Musk’s first Master Plan pretty much flew under the radar, though it did reveal the company’s strategy for the coming years. Written in 2006, Musk’s Master Plan, Part 1 discussed how the company intends to enter the affordable vehicle market by gradually evolving its lineup from expensive sports cars like the original Roadster to more affordable, mainstream vehicles like the Model 3. Musk’s first Master Plan also mentioned how electric vehicle owners could become energy positive by charging their EVs from renewable sources like the sun. 

Master Plan, Part 2 came ten years later, a time when the company was already producing the Model S and Model X. Published in 2016, Master Plan, Part Deux still highlighted that Tesla intends to enter all vehicle segments like heavy-duty trucks, pickups, and passenger-density urban transport. However, it also emphasized the importance of Tesla Energy and its solar products, as well as the value of advanced driver-assist systems like Autopilot. Musk also touched on the idea of the Tesla Network, which would be possible once autonomous driving is achieved. 

Needless to say, Tesla has not completed Musk’s second Master Plan yet. While all the goals highlighted by the CEO in his first Master Plan were met with the launch and ramp of the Model 3, the goals indicated in Master Plan, Part Deux have proven to be far more challenging. Vehicles like the Tesla Semi and Cybertruck are still waiting to be produced, and the Solar Roof ramp has been rife with delays. The deployment of FSD has made some progress with the FSD Beta program, but true autonomy still seems to be a distant goal. 

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This does not mean to say that Elon Musk’s Master Plan, Part 3, would be ill-timed, however. Musk definitely has a vision for Tesla, and he knows where the company is going. His long tenure as Tesla’s CEO also provides him with a pretty good eye as to what the company could achieve in the future. With this in mind, and while details of Master Plan, Part 3 are yet to be released, speculations are abounding about what Musk’s third grand plan would entail. Some TSLA bulls that have watched the company for years have suggested that Master Plan, Part 3 may involve Tesla’s transition to an Artificial Intelligence and data company

A focus on AI is not farfetched at all for Tesla, considering the company’s projects like Optimus and the wealth of data it is gathering from its fleet of vehicles every day. And it doesn’t even have to be limited to electric cars only. With products like its humanoid robot, Tesla’s AI projects could expand to a variety of industries. This is something that Musk seems to be quite excited about, as hinted at in a recent post on Twitter. The CEO highlighted that he has so much respect for those who do honest work in creating useful products and services for their fellow humans. 

“Working hard to make useful products & services for your fellow humans is deeply morally good. I have so much respect for the associates doing an honest day’s work at Tesla or SpaceX building & servicing cars, rockets, Starlinks, batteries, solar & many other things,” Musk wrote. 

Do you have any idea what Master Plan, Part 3 will entail? Sound off in the comments section below.

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Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla VP explains latest updates in trade secret theft case

Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.

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tesla 4680
Credit: Tesla Inc.

Tesla Vice President Bonne Eggleston explained the latest updates in a trade secret theft case the company has against a former manufacturing equipment supplier, Matthews International.

Back in 2024, Tesla had filed a lawsuit against Matthews International, alleging that the firm stole trade secrets about battery manufacturing and shared those details with some of Tesla’s competitors.

Early last year, a U.S. District Court Judge denied Tesla’s request to block Matthews International from selling its dry battery electrode (DBE) technology across the world. The judge, Edward Davila, said that the patent for the tech was due to Matthews’ “extensive research and development.”

Tesla is suing a former supplier for trade secret theft

The two companies’ relationship began back in 2019, as Tesla hired Matthews to help build the equipment for its 4680 battery cell. Tesla shared confidential software, designs, and know-how under strict secrecy rules.

Fast forward a few years, and Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.

Now, the latest twist, as this month, a Judge issued a permanent injunction—a court order banning Matthews from using certain stolen Tesla parts or designs in their machines. Matthews is also officially “liable” for damages. The exact amount would still to be calculated later.

Bonne Eggleston, a VP for Tesla, said on X today that Matthews is a supplier who “exploited customer IP through theft or deception,” and has no place in Tesla’s ecosystem:

Tesla calls this a big win and warns other companies: “Buyer beware—don’t buy from thieves.”

Matthews hit back with a press release claiming victory. They say an arbitrator ruled they can keep selling their own DBE equipment to anyone and rejected Tesla’s request for a total sales ban. They call Tesla’s claims “nonsense” and insist their 20-year-old tech is independent. Both sides are spinning the same narrow ruling: Matthews can sell their version, but they’re blocked from using Tesla’s specific secrets.

What are Tesla’s Current Legal Options

The case isn’t over—it’s moving to the damages phase. Tesla can:

  • Push forward in court or arbitration to calculate and collect huge financial penalties (potentially $1 billion+ if willful theft is proven).
  • Enforce the permanent injunction with contempt charges, fines, or even jail time if Matthews violates it.
  • Challenge Matthews’ new patents that allegedly copy Tesla’s work, asking courts to invalidate them or add Tesla as co-inventor.
  • Seek extra damages, lawyer fees, and possibly punitive awards under the federal Defend Trade Secrets Act and California law.

Tesla could also refer evidence to federal prosecutors for possible criminal trade-secret charges (rare but serious). Settlement is always possible, but Tesla’s fiery public response suggests they want full accountability.

This isn’t just corporate drama. It shows why trade secrets matter even when Tesla open-sources some patents, confidential know-how shared in trust must stay protected. For the EV industry, it’s a reminder: steal from your biggest customer, and you risk losing everything.

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Tesla Cybercab includes this small but significant feature

The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.

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Credit: Tesla

Tesla Cybercab manufacturing is strikingly close, as the company is still aiming for an April start date. But small and significant features are still being identified for the first time as production units appear all over the country for testing and for regulatory events, like one yesterday in Washington, D.C.

The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.

This was for everyone, including the disabled, who are widely reliant on ride-sharing platforms, family members, and medical shuttles for transportation of any kind. Cybercab aims to change that, and Tesla evidently put a focus on those riders while developing the vehicle, evident in a small but significant feature revealed during its appearance in the Nation’s Capital.

Tesla Cybercab display highlights interior wizardry in the small two-seater

Tesla has implemented Braille within the Cybercab to make it easier for blind passengers to utilize the vehicle. On both the ‘Stop/Hazard Lights’ button and the Door Releases, Tesla has placed Braille so that blind passengers can navigate their way through the vehicle:

This is a great addition to the Cybercab, especially as Full Self-Driving has been partially pointed at as a solution for those with disabilities that would keep them from driving themselves from place to place.

It truly is a great addition and just another way that Tesla is showing they are making this massive product inclusive for everyone out there, including those who have not been able to drive due to not having vision.

The Cybercab is set to enter mass production sometime in April, and it will be responsible for launching Tesla’s massive plans for an autonomous ride-sharing program.

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Tesla and xAI team up on massive new project

It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.

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Credit: Grok

Elon Musk teased a massive new project, to be developed jointly by Tesla and xAI, called “Digital Optimus” or “Macrohard,” the first development under Tesla’s investment agreement with xAI.

Musk announced on X that Digital Optimus will “be capable of emulating the function of entire companies.”

It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.

Essentially, it will be an AI version of a desk worker in many capacities, including accounting, HR tasks, and others.

Musk said:

“Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind).”

Its key applications would be used for enterprise automation, simulating entire companies, high-volume repetitive tasks, and potentially, future hybrid use with the Optimus robot, which would handle physical tasks, while Digital Optimus would handle the clerical work.

Tesla announces massive investment into xAI

The creation of a digital AI suite like Digital Optimus would help companies save time and money, as well as become more efficient in their operations through massive scalability. However, there will undoubtedly be concerns from people who are skeptical of a fully-integrated AI workhorse like this one.

From an energy consumption perspective and just a general concern for the human workforce, these types of AI projects are polarizing in nature.

However, Digital Optimus would be a great digital counterpart to Tesla’s physical Optimus robot, as it would be a hyper-efficient addition to any company that is looking for more production for less cost.

Musk maintains that there is no other company on Earth that will be able to do this.

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