Elon Musk explained that Tesla would be supplying cheap, durable, and high-performance electric vehicle batteries in the coming three years.
Musk reported that this type of battery would give more energy than the current cells, perform six times better than the current models, and raise the mileage range by close to 20%. He admitted that the mass production of these advanced cells would be visible in 2023. Musk thinks that it is high time Tesla developed cheap electric cars to absorb the low-income earners market.
Musk reported that they are working on reducing the cost of developing their batteries by recycling the waste cells at their Nevada facility. One of the materials that will need a substitution to keep costs down is the cobalt. Additionally, the company intends to develop its electric vehicle batteries via its automated industrial branches globally. Tesla’s lead energy engineer, Drew Baglino, explained that they would be creating the battery using automatic machines in the Nevada facility before evaluating its efficiency.
Elon Musk stated that they are not going to produce this battery in mass quantities because their research and development branch is still designing the battery. After the Tuesday conference, Tesla’s shares on the stock market went down by close to $20 billion, with analysts arguing that the CEO is making empty promises considering the company’s track record attaining its targets. Nevertheless, the company anticipates to produce and sell a minimum of 20 million electric vehicles annually. This quantity is a quarter of this year’s global target of electric vehicles in the market.
The Tuesday event was a surprise with the executives and stakeholders of Tesla choosing to sit at its Model 3 parking zone. In the transition to electric vehicles, Tesla investors are watching out how the company will pull a fast one to surpass the leading companies and retain its dominance in the industry.
Although the electric vehicles’ prices are going down because of altering the electric cars’ battery components are still highly-priced than the ICE cars. Analysts added that these cars’ prices must not exceed that of ICE cars if they hope to wipe out the latter. Additionally, the electric vehicle batteries’ costs must be as low as $100 for every kWh to accelerate their uptake.
To sum up, Tesla’s batteries’ prices are high, prompting the customers to go for cheap car models with cheap batteries like the Nissan Leaf. Nevertheless, Tesla has understood this side of competition and is developing its battery in Fremont, Germany.