During the company’s Battery Day presentation, Tesla CEO Elon Musk announced plans to produce a $25,000 electric car within the next three years. Though this isn’t the first time we’ve heard such a plan.
Musk says the company intends to utilizes its tabless battery cells as the linchpin to achieving the $25,000 price point. The tabless technology combined with new material inside the cells will supposedly allow Tesla to halve the per kilowatt-hour cost of its battery packs. The per kilowatt-hour pack cost has already fallen from $1,100 in 2010 to $156 today.
Aside from the battery details, Musk also asserted the $25,000 car will be “fully autonomous” with Level 5 autonomy. This is a claim Musk has been making for years, but Tesla has yet to deliver or showcase a vehicle with Level 5 autonomy. Some experts question if Level 5 autonomy is even achievable with today’s technology, despite Musk’s continuous claims of the contrary.
Musk also made the bold prediction that Tesla will eventually produce 20 million vehicles per year. The company currently does not have anywhere near the production capacity to produce 20 million vehicles. It is also worth noting that the entire global automotive industry produced 92 million vehicles in 2019, so it seems a bit far-fetched to assume Tesla will someday produce 20 percent of the globe’s vehicles, but time will tell.