Tesla Motors Inc (NASDAQ:TSLA)‘s CEO, Elon Musk expects the price of the batteries that fuel electric cars will come down significantly in the near future, but will it? A recent report by Menahem Anderman, organizer of Advanced Automotive Batteries Conference, highlights that Musk is probably outguessing the amount by which battery prices will decrease in the future. Green Car Report in one of its posts elaborated on the observations of Anderman.
At present, Tesla Motors Inc (NASDAQ:TSLA) boasts of having the lowest cost-per-kilowatt-hours in the industry, it is also rumored that the company is approaching the $200 per-kilowatt-hour. Though this is significant, but it is still way too high to bring down the cost of an electric vehicle. According to Musk, Tesla Motors Inc (NASDAQ:TSLA) would be able to bring down the battery cost to $100 per-kilowatt-hour in the next 10 years. However, Musk’s expectation is considered too rosy by Anderman.
Anderman feels that the battery cost could come down to as low as $167 per kilowatt hour by 2025, but it’s hard for them to go below the $200 per-kilowatt-hour mark by 2020. The most important detail of Anderman’s report is that he expects Tesla Motors Inc (NASDAQ:TSLA)’s Model 3, which is scheduled to be launched in 2017, to be priced in the range of $50-$80k, which is significantly higher than the $35,000 figure which Musk has stated as a goal. As of now, no one can really say whether Tesla Motors Inc (NASDAQ:TSLA) would be launching the Model 3, whose range will be two thirds of the Model S range, at a price point suggested by Anderman, especially when the basic model of Model S retails at $69,900.
As of June 30, 2014, Daniel Benton‘s Andor Capital Management owns over 1.25 million shares in Tesla Motors Inc (NASDAQ:TSLA).