Energy
Tesla’s Master Plan turns 15 years old: What Elon Musk’s company has achieved so far
Fifteen years ago today, on August 2nd, 2006, Co-Founder and CEO of what was then called “Tesla Motors” Elon Musk put out his top-secret Master Plan. Essentially, the cleverly titled document outlined what Musk envisioned for Tesla a few years before it would ever pump an electric vehicle off its production lines. Musk, who has built Tesla from nothing to the world’s most valuable automaker, with the help of employees and other executives, of course, showed the plan that would take the company to the top. At the tail-end of the document, the general ideas of the “Master Plan” are explicitly listed, giving anyone with even a glimmer of skepticism a clear-cut plan of what was to come.
Musk’s four bullet points cleverly stated:
- Build sports car
- Use that money to build an affordable car
- Use that money to build an even more affordable car
- While doing above, also provide zero-emission electric power generation options.
1. Build a sports car
The Tesla Roadster was the automaker’s first car. Priced exclusively for those who were financially viable and well-known, the Roadster was essentially a fundraising device used by Tesla to get its name out there and generate capital for a second all-electric car. “Almost any new technology initially has high unit cost before it can be optimized, and this is no less true for electric cars,” Musk wrote in 2006. “The strategy of Tesla is to enter at the high end of the market, where customers are prepared to pay a premium, and then drive down market as fast as possible to higher unit volume and lower prices with each successive model.”
This is exactly what was accomplished. The Roadster was bought by celebrities and wealthy figures of the public who were driving an all-electric, sustainable vehicle that did not contribute to the global environmental crisis that was upon us. The Roadster was snagged up by stars like Olivia Newton-John, Leonardo DiCaprio, and others, all as a way to generate money so Tesla could dive into developing its next project: the Model S.
The Original Tesla Roadster (Credit: carforyou.ch)
2. Use that money to build an affordable car
“Without giving away too much, I can say that the second model will be a sporty four-door family car at roughly half the $89k price point of the Tesla Roadster,” Musk said when speaking of the Model S before any concrete details were known.
Since the Model S was first released in 2012, it has accumulated several significant awards, including Motortrend’s Car of the Year award on several occasions. The Model S has also held high standards for crash safety and ranks among the safest vehicles on the market. After being reimagined with the recent release of the Model S Plaid, the flagship sedan from Tesla is better than ever before and is recognized as the fastest production car on the planet.
The Tesla Model S Plaid (Credit: Tesla)
3. Use that money to build an even more affordable car
This is where Musk’s plan takes a slight detour. The Model X was actually produced before the Model 3, and it was not more affordable than the Model S. However, Musk’s recognition that Tesla customers needed a family vehicle ultimately put the Model X ahead of the Model 3. However, the plan was still going relatively well. The Roadster funneled money to the Model S program, which ultimately cultivated in the Model X. The Model 3 followed in 2017 and became Tesla’s first mass-market vehicle.
The Tesla Model X (Credit: Tesla)
It was not an easy road to this point, however. Musk commonly refers to the Model 3 ramp as “production hell,” which was likely one of the most challenging phases of his life, likely comparable to when Tesla and SpaceX were nearly bankrupt in late 2008. The Model 3 ramp was met with difficulty due to scalability, production quality, and other bottlenecks that ultimately made the process much tougher than ever imagined. Musk has said that Tesla was on the verge of bankruptcy during the early phases of Model 3 production, stating that doors were about a month away from closing. It was “extreme stress & pain for a long time.”
Much like anything difficult, the Model 3 ramp was undoubtedly worth it. The vehicle managed to make Tesla a money-maker, and directly contributed to the company’s ongoing streak of profitable quarters. The Model 3 is on par with its sibling Model Y, which has become Tesla’s most popular car. The Model 3 still contributes substantially to the automaker’s increasing delivery and production figures that rise on a quarter-over-quarter basis to this day.
The Tesla Model 3 (Credit: Tesla)
4. While doing above, also provide zero-emission electric power generation options
While Tesla is most commonly noted for its vehicles, its energy division does not receive enough credit. Tesla Energy has continued to grow every quarter, and energy deployment and generation figures increase with every quarterly update the company provides. Most recently, Tesla stated that energy storage deployments more than tripled Year-over-Year in Q2, mainly driven by Megapack projects. Powerwall, Tesla’s residential energy storage option, continues to be in high demand and nearly doubled YoY in Q2. Additionally, Tesla’s solar deployments more than tripled YoY, reaching 85 MW in Q2.
Tesla’s energy program has helped residents worldwide avoid blackouts and power outages while also accumulating significant amounts of energy directly from the sun.
(Credit: Tesla)
It is pretty safe to say that Tesla has done an outstanding job keeping up with Elon Musk’s top-secret Master Plan. But one last thing:
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
Hard to believe it’s been 15 years already.
Those goals actually precede the creation of Tesla by many years. Goes back to probably ~1992 when I was in college. However, at the time, I thought the chance of achieving those goals was very low.
— Elon Musk (@elonmusk) August 2, 2021
Tesla just trademarked ‘MEGAPOD’ with the United States Patent and Trademark Office (USPTO), its latest move in what seems to be a hint that the company is incredibly focused on its AI efforts and storage needs as compute increases.
The application carries serial number 99893717 and lists the applicant as Tesla, Inc., located at 1 Tesla Road, Austin, Texas 78725.
The filing remains in ‘live pending’ status, and it is a new application waiting for assignment to an examining attorney. It has not yet been published or registered.
Tesla just trademarked MEGAPOD
Summary:
“Modular data center hardware systems for artificial intelligence computing, comprised of computer servers, computer hardware for artificial intelligence processing, computer networking hardware, electrical power distribution units, and… pic.twitter.com/3l85DsKadl— Robin (@xdNiBoR) June 19, 2026
According to the official goods and services description in the application, Tesla describes ‘MEGAPOD’ as:
“Modular data center hardware systems for artificial intelligence computing, comprised of computer servers, computer hardware for artificial intelligence processing, computer networking hardware, electrical power distribution units, and cooling systems, sold as a unit; self-contained modular computing hardware systems for artificial intelligence workloads; integrated computer hardware platforms for artificial intelligence computing, namely, enclosures containing computer hardware, power distribution hardware, and cooling hardware, sold as a unit; downloadable software for monitoring, managing, optimizing, and regulating modular artificial intelligence computing hardware systems.”
This description specifies complete, self-contained modular units that integrate servers and specialized AI processing hardware with networking components, power distribution, and cooling systems. It also includes associated downloadable software for oversight and optimization of these systems. The language emphasizes hardware sold “as a unit” and enclosures that combine the necessary elements for AI computing workloads.
Tesla has an established history of developing and commercializing modular hardware systems. Its Megapack product line, for example, consists of utility-scale battery energy storage systems designed as containerized units for grid applications. The MEGAPOD filing follows a similar pattern of protecting a name for modular, integrated hardware platforms, this time focused on artificial intelligence computing infrastructure.
This could be an early move, especially as Tesla did not have trademark rights to the word ‘Cybercab,’ the name of its self-driving, ride-hailing-focused vehicle.
Trademark applications of this type allow companies to secure priority rights to a name for defined categories of goods and services. The USPTO examines applications for compliance with legal requirements, including distinctiveness and absence of conflicts with prior marks. If the application proceeds successfully through examination, publication, and any opposition period, it could result in a federal trademark registration providing nationwide protection. This is what Tesla’s obvious intention is with ‘MEGAPOD.’
Public reports and analysis suggest MEGAPOD could represent modular, container-style AI computing pods designed for easy deployment. These would bundle servers, AI accelerators, power systems, and cooling into self-contained units suitable for distributed AI workloads. This approach aligns with Tesla’s announced AI compute strategy.
In March 2026, Elon Musk outlined plans for “Digital Optimus” (also referred to as Macrohard), a joint Tesla-xAI project for AI agents capable of handling complex digital tasks. The plans include running these agents on Tesla’s AI4 hardware in parked vehicles as well as dedicated compute units installed at Supercharger stations, which collectively offer substantial unused electrical capacity.
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A modular hardware platform like the one described in the ‘MEGAPOD’ filing would support scalable, rapid deployment of such distributed compute resources. It could complement Tesla’s other AI infrastructure efforts, including the Dojo supercomputer used for training models and the development of AI systems for autonomous driving and robotics, by enabling edge or regional AI inference without reliance on traditional centralized data centers.
In a notable intersection of Big Tech powerhouses, Meta, led by Mark Zuckerberg, has partnered with Canadian energy infrastructure giant Enbridge on a significant renewable energy initiative that will rely on battery technology from Elon Musk’s Tesla.
The project, which was announced this week, marks another step in Meta’s aggressive push to power its expanding data center operations with clean energy, dispelling many of the complaints people have about them.
This new development is located near Cheyenne, Wyoming, and will feature a 365-megawatt (MW) solar farm paired with a 200 MW/1,600 megawatt-hour (MWh) battery energy storage system, also known as BESS. Tesla is providing the batteries for the project, valued at roughly $200 million.
The story was originally reported by Utility Dive.
This Wyoming project represents the first phase of Enbridge and Meta’s joint “Cowboy Project.” Once operational, it will deliver power to Meta’s regional data centers through Cheyenne Light, Fuel, and Power under Wyoming’s Large Power Contract Service tariff.
This tariff, originally developed in collaboration with Microsoft and Black Hills Energy, is designed specifically for large loads like data centers. It ensures that the renewable supply serves hyperscale customers without impacting retail electricity rates for other users.
The battery system will operate under a long-term tolling agreement, providing dispatchable capacity that enhances grid reliability. During periods of high demand, the utility can access the backup generation, addressing one of the key challenges of integrating large-scale renewables with the explosive growth of data center electricity demand driven by artificial intelligence.
This latest collaboration builds on prior joint efforts between Enbridge and Meta in Texas, including the 600 MW Clear Fork Solar, 152 MW Easter Wind, and 300 MW Cone Wind projects. Together with the Wyoming initiative, the companies have now partnered on roughly 1.6 gigawatts (GW) of combined solar, wind, and storage capacity.
The deal highlights the intensifying demand for reliable, low-carbon power from technology giants. Meta has committed to supporting its data center growth with renewable energy, joining peers like Microsoft and Google in seeking large-scale solutions. Enbridge’s Allen Capps described the project as “one of the larger utility-scale battery installations supporting U.S. data center operations and growth.”
The involvement of Tesla’s battery technology adds an intriguing layer, linking two of the world’s most prominent tech leaders—Zuckerberg and Musk—in the clean energy transition.
As data centers continue to drive unprecedented electricity load growth across the United States, projects like this one illustrate how hyperscalers are turning to strategic partnerships with traditional energy players and innovative storage solutions to meet both sustainability goals and reliability needs.
Elon Musk
Why SpaceX just made a $60 billion bet on AI coding ahead of historic IPO
SpaceX has secured an option to acquire Cursor AI for $60 billion ahead of its historic IPO.
SpaceX announced today it has struck a deal with AI coding startup Cursor, securing the option to acquire the company outright for $60 billion later this year, while committing $10 billion for joint development work in the interim. The announcement described the partnership as building “the world’s best coding and knowledge work AI,” and comes just days after Cursor was separately reported to be raising $2 billion at a valuation above $50 billion.
The move makes strategic sense given where each company currently stands. Cursor currently pays retail prices to Anthropic and OpenAI to the same companies competing directly against it with Claude Code and Codex. That means every dollar of revenue Cursor earns partially funds its own competition. With SpaceX bringing computational infrastructure to the Cursor platform, that could reduce Cursor’s dependence on OpenAI and Anthropic’s Claude AI as its providers. Access to SpaceX’s Colossus supercomputer, with compute equivalent to one million Nvidia H100 chips, gives Cursor the infrastructure to run and train its own models at a scale it could never afford independently. That one change restructures the entire unit economics of the business.
Elon Musk teases crazy outlook for xAI against its competitors
Cursor’s $2 billion in annualized revenue and enterprise reach across more than half of Fortune 500 companies gives SpaceX something its xAI subsidiary currently lacks, which is a proven, fast-growing software business with real enterprise distribution.
For Cursor, SpaceX’s $10 billion in joint development funding is transformational. Cursor raised $3.3 billion across all of 2025 to reach that $2 billion in revenue. A single $10 billion commitment from SpaceX, even as a development payment rather than an acquisition, dwarfs everything Cursor has raised in its entire existence. That capital accelerates product development, enterprise sales infrastructure, and proprietary model training simultaneously.
The timing is deliberate. SpaceX filed confidentially with the SEC on April 1, 2026, targeting a June listing at a $1.75 trillion valuation, in what would be the largest public offering in history. The company is expected to begin its roadshow the week of June 8, with Bank of America, Goldman Sachs, JPMorgan, and Morgan Stanley serving as underwriters. Adding Cursor to the portfolio before that roadshow gives IPO investors a concrete enterprise software revenue story to price in, alongside rockets and satellite internet.
The deal also addresses a weakness that became visible after February’s xAI merger. Several xAI co-founders departed following that acquisition, and SpaceX had already hired two Cursor engineers, signaling where its AI talent strategy was heading. Cursor, for its part, faces a pricing disadvantage competing against Anthropic’s Claude Code.
Whether SpaceX exercises the full acquisition option before its IPO or after remains the open question. Either way, this deal reshapes what investors will be buying into when SpaceX goes public.
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