The cost of Tesla's battery will be reduced to 50-55 US dollars / kWh in the future.

Published: Dec 1, 2020 10:34

SMM: according to reports, Tesla CEO Elon Musk said at the European Battery Conference a few days ago that Tesla's long-term goal is to reduce the cost of the battery pack to 50-55 US dollars / kWh.

At present, the cost of the battery pack is still very high, with an average market cost of about $156USD / kWh except Tesla by the end of 2019. Tesla has kept the actual cost of his battery pack a secret, but Mr Musk has previously revealed that the company will cost less than $100per kilowatt-hour by the end of 2018.

The new 4680 battery previously released by Tesla shows that relying on the new battery technology and the production process controlled by Tesla, the range of Tesla's model can be increased by 54% in the future, the battery cost per kWh will be reduced by 56%, and the investment cost per kWh will be reduced by 69%. As a result, it can be estimated that after 4680 batteries are put into production in the future, Tesla may be able to reduce its cost to about $50-55 / kWh.

Mr Musk said Tesla was now able to produce cars with long mileage and fast charging. However, in order to make these cars cheaper and cheaper, the company must continue to reduce the cost of battery production. At the same time, reducing the production cost of batteries will be the key that the pricing of electric vehicles is the same or even lower than that of internal combustion engines.

Editor's comments:

Tesla has made several rounds of price cuts in China, relying on lower costs of spare parts, including batteries, and now Tesla has put forward a challenging battery cost target, as Musk said. the move is to further lower the price of electric cars, even lower than fuel cars, in order to achieve better competitive advantage and sales profits. Do you think electric cars are at the same price as fuel cars of the same class? How many years can it be realized? Please tell us what you think in the comments section.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Beijing Launches 500-kV Power Project in Fengtai, Boosting Grid Resilience and Industrial Growth
19 hours ago
Beijing Launches 500-kV Power Project in Fengtai, Boosting Grid Resilience and Industrial Growth
Read More
Beijing Launches 500-kV Power Project in Fengtai, Boosting Grid Resilience and Industrial Growth
Beijing Launches 500-kV Power Project in Fengtai, Boosting Grid Resilience and Industrial Growth
On January 28th, the construction of the 500-kilovolt power transmission and transformation project in Fengtai, Beijing officially started. This project is the first newly-built 500-kilovolt power grid project in Beijing during the 15th Five-Year Plan period. It will significantly enhance the resilience and power receiving capacity of the southern Beijing power grid and provide reliable power support for Beijing to continuously optimize the investment structure and vigorously develop high-end, precise, and cutting-edge industries. The 500-kilovolt power transmission and transformation project in Fengtai, Beijing is a key project of Beijing's power grid during the 15th Five-Year Plan period and one of the "3 100" key projects in Beijing this year. It is constructed and managed by the State
19 hours ago
Shaanxi-Anhui UHV DC Project's 500-kV AC System at Hezhou Station Begins Operation After Trial Run
19 hours ago
Shaanxi-Anhui UHV DC Project's 500-kV AC System at Hezhou Station Begins Operation After Trial Run
Read More
Shaanxi-Anhui UHV DC Project's 500-kV AC System at Hezhou Station Begins Operation After Trial Run
Shaanxi-Anhui UHV DC Project's 500-kV AC System at Hezhou Station Begins Operation After Trial Run
On February 1st, the 500-kilovolt AC system of the Hezhou Converter Station, the receiving-end station of the ±800-kilovolt UHV DC power transmission project from northern Shaanxi to Anhui, was officially put into operation after a 24-hour trial run.
19 hours ago
750-kV Power Line Connecting Northern to Central Shaanxi Fully Operational
19 hours ago
750-kV Power Line Connecting Northern to Central Shaanxi Fully Operational
Read More
750-kV Power Line Connecting Northern to Central Shaanxi Fully Operational
750-kV Power Line Connecting Northern to Central Shaanxi Fully Operational
On February 2nd, the 750-kilovolt power transmission and transformation project of the third passageway from northern Shaanxi to central Shaanxi was fully connected. The project starts from the 750-kilovolt Shuofang Substation in Shenmu City in the north and ends at the 750-kilovolt Bailuyuan Substation in Lantian County in the south. It has newly built a 1,271-kilometer line, passing through 18 counties (districts) in 4 cities including Yulin, Yan'an, Weinan and Xi'an.
19 hours ago