Join our Waitlist for Expert Advice!

Tesla: Our Next-Gen Battery Tech Will Help Create a $25,000 Electric Car Tesla plans on incorporating the new battery tech and manufacturing methods in 12 to 18 months with full utilization in three years.

By Michael Kan

Justin Sullivan/Getty Images via PC Mag

To one day create a $25,000 electric car, Tesla says it's come up with a way to reduce the costs to building its batteries by more than 50 percent.

At the company's Battery Day event, Tesla CEO Elon Musk went over a whole series of changes the automaker plans on making that promise to streamline vehicle manufacturing and the battery cells themselves. The results can not only help Tesla save on costs, but also increase the range of its electric cars by as much as 54 percent.

Among the changes are a new battery, the 4680, which Tesla says can offer five times the energy capacity and six times the power over the company's existing batteries.

Image credit: Tesla

Tesla plans on incorporating the new tech and manufacturing methods in 12 to 18 months with full utilization in three years, according Musk. Once in place, the company will be able to pump out electric batteries at a higher volume and at a lower cost, enabling the automaker to bring millions of more vehicles to market — including less expensive models.

"I think probably about three years from now we can confidently make a very compelling $25,000 electric vehicle that's also fully autonomous," Musk said. (For perspective, the cheapest Tesla car, the Model 3, currently goes for $37,790.)

The newly announced cost improvements come not from a single technological breakthrough, but from numerous changes made across the entire manufacturing chain and how the batteries themselves are constructed.

For example, one change involves constructing a Tesla car from a single piece of metal so that the electric battery can be more densely packed inside. Another improvement involves the company setting up its own cathode production facility by directly extracting the lithium from a field in Nevada.

"Tesla will absolutely be head and shoulders above anyone else in (electric car) manufacturing. That is our goal," Musk said.

Related: Founder of Tesla Rival Nikola Resigns Following SEC Probe Into Electric Truck Business

On the flip side, it'll take some time for Tesla to iron out and build out the new manufacturing technologies. "If we could do this instantly we would," he added. "But I think it really bodes well for the future. The long-term scaling of Tesla and the sustainable energy products we make will be massively increased."

At the event, Musk also gave an update on Autopilot, the driver-assist feature on Tesla vehicles. The company plans on releasing a beta update to Autopilot in "a month or so" that will allow for a fully self-driving Tesla, which Musk has long promised. He was sparse on the details, but said his company overhauled the software behind the system to better identify 3D objects recorded with the car's sensors.

Michael Kan

Reporter

Michael has been a PCMag reporter since October 2017. He previously covered tech news in China from 2010 to 2015, before moving to San Francisco to write about cybersecurity.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

You Have One Month Left to Buy a House, According to Barbara Corcoran. Here's Why.

"If you are planning on waiting a year and seeing where interest rates go, you are out of your mind," Corcoran said.

Business News

This New Restaurant Is Banking on One Dish — Because It's the Only Entrée on the Menu

The new hotspot is gaining buzz on social media for its innovative yet super simple concept.

Side Hustle

I Made $14,000 in 1 Week With a Spontaneous Halloween Costume Side Hustle — Here's How

Sabba Keynejad was in art school when he started to refine his entrepreneurial skills.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Leadership

4 Bold Leadership Moves Every Successful CEO Uses to Navigate Change

Ready to turn fear into fuel and lead with confidence? In this article, I share how leaving my corporate job without a plan led me to build a thriving business. Learn four bold strategies to embrace uncertainty and turn challenges into opportunities for growth today.