Here is the news that will please not only brand fans, but also the investors. American automaker Tesla announce a new generation of cheaper batteries and increased life. New batteries should last even over 1.6 million km (1 million miles).
In China, the production of the long-distance electric variant Tesla Model 3, i.e. the Long Range version, has started. It will be possible to cover about 600 km on one charge, which is as many as many traditional cars with a gasoline engine. In addition, the new model is becoming more affordable. Tesla reduced the price of the car by more than 22 percent. Chinese buyers will therefore pay around 344,000 yuan ($48,500). In December 2019, the car cost almost 440,000 yuan (about $62,500).
According to Bloomberg reports, the price reduction was introduced faster than expected. The reduction was originally planned for the second half of the year after the end of the government’s subsidy program (the authorities in China will suspend subsidies for the purchase of electric cars more than 300,000 yuan from July). However, this is not the end of price reductions.
An anonymous source, quoted by Reuters, mentions another surprise from Tesla. That Tesla is going for a completely new generation of cheaper batteries (they will go to the Chinese market at the beginning), thanks to which the Model 3 will be more competitive in price compared to traditional combustion cars. And it’s not just about buying a new car in the showroom, but also about the value for resale or lower production costs.
Batteries developed jointly with the Chinese CATL will be distinguished by increased lifetime. The new links should have enough to cover over 1.6 million kilometers (1 million miles). An anonymous source from Reuters mentions higher energy density, lower production costs and reduced cobalt content (lithium iron-phosphate batteries are also planned). In addition, there is a significant improvement in efficiency in the production of new cells (greater automation and reduced labor costs).
Of course, there was also a comparison to traditional combustion cars. In the message, Reuters mentions the reduction of costs for even below $80 per 1 kWh. Thus, the chances of equating Tesla prices with similar combustion models is increasing. And this is certainly very good news for investors. Tesla’s shares are rising again – probably until the next controversial tweet by Elon Musk.