Tesla battery cost drops to $156 per kWh, lowest among rivals

There’s new data that reveals the big advantage the company holds over other automakers. According to Cairn ERA, Tesla has managed to drop its battery cost to $156 per kilowatt hour, and is expected to keep its battery cost lowest among its competitors for years.

Tesla Model 3

According to Cairn Energy Research Advisors, the cost of Tesla battery has come down significantly. They basically break down batteries, look at the battery pack, look at the battery management system, and they say that Tesla is now down to $156 per kilowatt hour.


That’s at least $45-$50 above all other automakers who do not use the same type of battery pack. They do not use cylindrical battery cells for building theirs, and according to Sam Jaffe with Cairn Energy Research, this is an advantage that Tesla is using and will use for years to come.

Tesla has a few years advantage, they’ve started a few years before the other automakers have committed to this, so they’re quite ahead. That’s going to last some time if they continue to innovate, which so far they have.

This is important data, for one reason, mainly the fact that we continuously hear from people saying that, ‘well there’s nothing different about a Tesla than any other electric vehicle,’ that is simply not true. There is a difference, both in terms of structure, the software, and even the chemistry.

That is the benefit that Tesla is using right now, and it’s a big reason why increasingly, when you talk with analysts on Wall Street, they say this is an advantage that Tesla will use at least for the next couple of years, until other automakers become more competitive in terms of cost.

Contact the author: clarkgarcia@wheelsjoint.com


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