Musk promises cheaper Tesla electric vehicles should be available before 2025.
It has always been Elon Musk’s vision that electric vehicles should be affordable for the masses. But since battery packs make up a significant portion of the total production cost of EVs, the cost of batteries needs to go down first. In a time when EV manufacturing is going full speed and electric vehicles are finally receiving widespread acceptance, this announcement ensures there is a hope for a sustainable future.
Musk made this announcement during a virtual meeting of 240 shareholders, conveniently titled “Battery Day,” where he also provided hints of a $25,000 fully-autonomous Tesla within the next three years. To do so, Tesla wants to eliminate its dependence on batteries produced by other companies like Panasonic and LG Chem.
With that being said, the main point of the presentation was Tesla’s brand new and larger cylindrical battery cells, producing five times more energy, six times more power, and a 16% longer range.
On the low side, the shareholders’ sentiment was quite negative due to the loss of $50 billion in the financial markets. Furthermore, some experts state that Tesla will have to cross a few technological hurdles. In contrast, others think that the price of batteries will only lower to an extent, obviously raising many questions among investors.
Despite the constructive criticism, Musk is famous for turning a blind eye to any challenge. We are already aware of the heights he reached with SpaceX and Neuralink. If anyone can pull it off, then it has to be him.