Tesla CEO Elon Musk has detailed a plan to solve the global energy transition challenge.

Speaking at the electric vehicle giant’s headquarters in Austin, Texas, Mr Musk outlined a five-part master plan.

He said 35 per cent of the required reduction in fossil fuels will be accomplished through renewable energy, 21 per cent from electric vehicles, 22 per cent from electric heat pumps, 17 per cent from high-temperature heat delivery, and 5 per cent from sustainable fuels for planes and boats. 

Mr Musk estimated the cost involved would be around US$6 trillion, but he argued that even if that rose to US$10 trillion, the global economy is worth approximately US$100 trillion, so the cost of the transition could be as little as 1 per cent over a decade or 0.5 per cent over 20 years. 

Mr Musk claimed that the total landmass required for the initiative works out at 0.2 per cent of the world's land. He added that the sustainable energy world requires half as much energy as one powered by fossil fuels. 

Tesla aims to boost annual EV production from 1.4 million to 20 million by 2030 and eventually reach 1,000 GWh of annual battery storage production. 

Chief Financial Officer Zach Kirkhorn said that the total investment required to achieve this goal would be between US$150 billion and US$175 billion, with around US$28 billion already invested.