Tesla CEO Elon Musk announced they are developing battery packs, which would substantially drive down a Tesla car’s cost to no more than $25,000.
Tesla CEO Elon Musk developing an affordable car that will be environmentally friendly
The car would hit the market in three years after the ramp-up of their new battery and cell production. The car would even be fully autonomous. The cost of lithium-ion batteries has already gone down a considerable amount in recent years. Bloomberg reports that the price has gone down from $1,160 in 2010 to $156 in 2019.
Right now, Tesla’s cheapest car is the Model 3 at $38,000. However, that is limiting those who want to cut emissions but don’t have that level of disposable income. Transitioning away from fossil fuels in cars can only happen when the lower price brackets are reached, which in turn can’t be done until battery technology becomes cheaper, which is getting closer.
Tesla continues to gain a following.
The public has been drawn to Tesla and has helped it achieve success, leading them to produce the most sold electric car in history. The Wired wrote that a 2023 deadline for a $25,000 Tesla is possible, but its forcing Musk to reduce battery production costs at every corner.
Outside market forces, including supply and demand, can quickly drive down the cost of products. This happens throughout history; look at the TV and mobile phones. The same effects have driven the costs of producing electric car batteries down over recent years.
Even more, the reduced costs Elon Musk and Tesla are bringing battery production back to the United States from Japan and China. This will help eliminate travel expenses, aiding in the price of a car being $25,000.
Tesla is setting itself apart in several ways. It’s a company working hard to bring back jobs to America and help drivers become more environmentally friendly. Would you buy a $25,000 Tesla car? Are you a fan of Musk’s technological achievements? Share your thoughts in the comment section below.
