The electric car manufacturer says updates to its battery design and manufacturing process will help lower production costs.
- The high cost of batteries is the main reason why electric vehicles cost more than gas-powered cars.
- At the company's 'Battery Day' event on Tuesday, Tesla announced a new battery design that will give its cars more power and a longer range.
- The success of Tesla's plan depends on its ability to scale up production.
Screenshot of Tesla's 'Battery Day' presentation
Tesla<p>It's unclear when Tesla will stop using cobalt, or when it will stop sourcing its batteries from Panasonic. But Tesla claims that its new battery design and manufacturing changes will allow it to cut the cost per kilowatt-hour in half. If Tesla can successfully scale up production, the company could hit its goal of $100 per kilowatt-hour sooner than expected.</p><p>Hitting that mark could usher in the electric-car revolution, considering $100 per kilowatt-hour is <a href="https://www.greentechmedia.com/articles/read/How-Soon-Can-Tesla-Get-Battery-Cell-Cost-Below-100-per-Kilowatt-Hour" target="_blank" rel="noopener noreferrer">generally regarded as the threshold</a> the industry needs to reach in order to make electric vehicles cost competitive with gas-powered cars. </p><p>A $25,000 electric car would also be Tesla's cheapest offering by far. The company had previously promised a $35,000 car, but only offered one at that price for a limited time. Tesla's website says its Model 3, its cheapest car, starts at about <a href="https://www.industryweek.com/leadership/article/22027923/tesla-declines-as-model-3-price-cut-renews-demand-concerns" target="_blank">$39,000.</a></p>
Photo of Tesla's new battery design
Tesla<p>To be sure, Musk is known for promising big on his projects, but not always following through on the promised timetable. But despite having an "insanely hard" 2020, as Musk said, Tesla's had a good past couple years.<br></p><p style="margin-left: 20px;">"In 2019, we had 50% growth," Musk said at the event. "And I think we'll do really pretty well in 2020, probably somewhere between 30 to 40 percent growth, despite a lot of very difficult circumstances."</p>
Tesla's market cap surpassed that of GM and Ford on April 10, 2017.
Tesla’s market cap reached about $51 billion on April 10, briefly pushing the company ahead of GM and Ford as the most valuable car manufacturer in the U.S.
Elon Musk has a plan and part of that plan came together when it acquired SolarCity for $2.6 billion.
Elon Musk has a plan and part of that plan came together when it acquired SolarCity for $2.6 billion in November 2016. This deal will ultimately allow Tesla to sell all-electric goods under one, unified brand.