Tesla’s CEO Elon Musk, is almost confident that we are getting to an age where Tesla will be much cheaper. He estimates self-driving Tesla worth $25,000 will be available soon. Companies have cropped up that create cheaper and effective batteries for electric vehicles that will bring down their prices.

As you may be aware already, Tesla is expensive because of the battery. You will find that almost half its price is the battery’s cost. That is why several companies have been looking to create cheaper batteries for electric vehicles to bring down its price. The fancy self-driving vehicles are pretty awesome, but the problem arises in their initial cost.

The only time these vehicles can replace the combustion engine motors is if their price goes down. Fortunate enough, the CEO of these Tesla, Elon Musk, has been hinting at a reduction in Tesla’s price in the coming years. He is confident that the company will manufacture $25,000 worth Tesla affordable to people.

Battery Day 2020

During an annual meeting, Drew Baglino and Musk outlined a plan to bring down electric vehicle manufacturing’s initial price. The plan was to change how the Tesla vehicles are built and the parts used. The company estimates that there will be a 14% reduction in the initial cost per kilowatt-hour with the new batteries.

A new battery design will boost the efficiency of the vehicles and bring down their initial price. By streamlining the batteries, Tesla seeks to manufacture around 100 gigawatt-hours battery capacity by 2022.

Tesla also aims to achieve a 56% reduction in the total cost per kWh. That is to be achieved via nickel cathode chemistry and lithium recycling innovations to create a structural battery construction. All these will bring about a stiffer and lighter EV chassis. The benefit achieved by the company is estimated to be around 54%, which will boost the vehicle range from a lower manufacturing cost but the exact energy capacity.

Tesla is certain that it will pass on the reduced manufacturing cost to the vehicles’ initial cost. “What does this mean for our future products? We’re confident that long-term we can design and manufacture a compelling $25,000 electric vehicle.” Musk said. Currently, the Tesla Model 3 Sedans costs about $38,000.

Keep in mind that Musk had earlier hinted that there would be cheaper EVs in the future, and now the dream is seemingly actualizing in the next few years.

Companies Creating Efficient Batteries

More and more innovative companies are looking to create fundamental technologies that will have batteries for electric vehicles that are more powerful, cheaper, and long-lasting. These batteries are also going to be the safest for the vehicles in the market. These companies are created by technologists and analysts who are fully aware of making the batteries more effective.

Normally, every time you are using up a battery, it degrades, and with time, it will come to the end of its useful time. A layer forms every time on top of the cathode and anode, which renders the battery inactive over time. To avoid the batteries from dying faster, these companies will introduce a coating inside the battery. These companies will use a unique nanolayer coating, which is supposed to prevent the rust layer from forming.

Elon Musk on Cheaper Cars

“Our first car was an expensive sports car and then a slightly less expensive sedan and then the mass market premium Model 3 and Model Y,” said Musk. Elon also added that it was always in the company’s mind that they aimed to create cheaper and affordable electric cars. The CEO stated that Tesla aims to produce fully autonomous electric vehicles that will cost around $25,000 in three years.

Of course, that may not be the best news to hear as the CEO and co-founder has been talking about it, but the sheer imagination of the affordable electric cars is what is most thrilling. The CEO also mentioned that Tesla has a goal of manufacturing about 20 million cars every year.

The new cells that are to be used by the electric vehicles will be more powerful as they will have almost five times more energy. The existing tech is also not as powerful as the new cells. They will give the electric vehicles a 16% more range, which will give the vehicle at least six times more power. These new batteries will also be cheaper than the original version by almost half.

Tesla is an electric vehicle manufacturing company and has been on the run to produce cheaper vehicles for almost everyone. Their initial prices are quite high, and not everyone can afford these vehicles. Tesla batteries are quite expensive, which makes the vehicles expensive.

However, with several companies creating effective batteries for electric vehicles, their prices could reduce in the coming few years. The use of a coating technology on the batteries make them more safe, efficient, and economical. Thus, the prices of Tesla vehicles could reduce according to the Tesla CEO.

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