Tesla promises to reduce the cost of its batteries by 50%

At Tesla’s online presentation titled Battery Day, company founder Elon Musk announced the development of a “tabletop” battery that will improve the range and power of an electric car. The company will manufacture new batteries at its own facility.

Tesla promises to cut battery costs by 50%. It is estimated that the current cost of its batteries is in the order of $130 per kilowatt-hour. Such a decrease will mean overcoming the critical threshold of $100 per kilowatt-hour – behind it, electric cars reach price parity, and then they become cheaper than cars with internal combustion engines, Bloomberg noted.

It will take a company from 1 to 1.5 years to fully implement the new technology. After the full launch of the technology, Tesla will be able to sell an electric car for about $25 thousand. This cost corresponds to the average price of a gasoline car in the United States, the company explained.

The company moves on to manufacturing its own battery cells in a new larger form factor (4860). The new elements will provide greater compactness, increased energy density, and better cooling. The company is now buying lithium-ion cells from Panasonic and this collaboration will continue for the foreseeable future.

Elon Musk also said that since the third quarter of 2019, Tesla has been showing profitability for four quarters in a row. According to him, unlike most automakers in the world, the company has a positive growth rate. In 2019, the figure was 50%.