The price (after a $7,500 federal tax credit) for the vehicles will be $49,900 for the 40kWh vehicle, $59,900 for the 60kWh vehicle, and $69,900 for the 85kWh. A performance version of the car, which accelerates from 0 to 60mph in 4.4 seconds, will be available for $79,900. Two other luxury versions will be available for $87,900 and $97,900.
A flat battery pack (bottom) enabled Tesla engineers to lower the center of gravity and save cabin space. (Source: Design News.)
Tesla's new batteries are far bigger than those appearing on other pure electric vehicles and plug-in hybrids. The Nissan Leaf, for example, employs a 24kWh battery, while the Chevy Volt uses 16kWh. The Prius PHV plug-in hybrid incorporates a battery of just 5.2kWh capacity. That would mean the Model S's largest battery offers about 16 times more energy than the Prius PHV battery.
Tesla's $10,000 price increment between battery sizes is also significant, because its suggests that the company is building and selling battery packs for lower than the costs often quoted by experts, or is taking a financial loss on the batteries. (Tesla representatives at NAIAS would not comment on battery prices.) The 20kWh difference between the two smaller batteries, for example, represents a $500/kWh price difference. Most automakers are currently estimating prices of almost twice that for lithium-ion battery packs. Toyota said last week that it still estimates its pack costs at more than $1,000 per kWh.
Thanks for elaborating NaperLou and that strategy does make sense. The 50K range puts it in the same ballpark as other high-end luxury sedans/SUVs like BMWs and Lexus cars and if you consider the profile of early adopters, typically it is the gadget guy (or gal) who wants the latest in new technology, but also wants it nicely packaged in a high-end design. So basically Tesla is betting that the same folks that shelled out the thousands for the flat screen HD TVs before everyone was buying sub $1K flat screens or the pricey tablets before knock-offs hit the market are the ones that will experiment with the "mid-priced" Tesla offering.
Naperlo, in mentioning Tesla's strategy, I wonder if the company introduced a lower-price vehicle (relative to its $100K car) in order to get a higher volume of sales. I can't imagine a car maker could survive long selling cars for $100K. Maybe I'm wrong, but just can't imagine there is sufficient volume at the price point unless you're BMW or Mercedes. Getting vehicles down to the $50k range could make a difference in volume sales.
Good looking car, but I think you are right, Beth. The Model S seems to be made more for the driver who wants an EV, but also expects to stand out from the crowd while driving it. I can't help but wonder if all these car company's will eventually fall flat in their electric efforts because they are all trying to be better than the rest. At what point do they stop trying to impress with infotainment and other features? Yes, they are cool, but isn't a car just supposed to get you from point A to point B?
Acctually, Beth, I have an answer to that. I was at an IEEE meeting where we had a former company executive speak about the car and the company's strategy. Realizing that the battery technology was still way to expensive for a mass market car, Tesla decided on a phased approach. The overall goal was to prove the viability of electric vehicles. That meant getting some on the road and getting real world experience. So, they started at the high end with a vehicle type that would not be a primary commuter car. This was their sports model, which listed at about $100K. The car in the article is the next step, This is a mid-size car that goes up against the BMW 5 Series in size, price and features. As mentioned in the article, the battery pack design is new, and potentially less costly than the battery in the first Tesla.
The whole theory behind this is the new technology adoption curve. A good example is flat screen TVs. Early models, of perhaps 36" size cost over $5K. Today you can buy a 46" or greater with LEDs and 3D capability for $1K or so. New, ultra flat TVs are about to come out that will cost $8K, I have read. There will always be some who are willing to pay for the latest and greatest. As the prodcution ramps up and competitors arrive, the costs come down.
As for the Leaf and Volt, they are not really cheap for what they provide. I think they are both in the upper $30Ks.
While it sounds like Tesla is making strides with addressing the battery life/capacity/size issue, the $50K pricetag puts it way out of the range of practical, mainstream vehicles, in my book, any way. Is this model meant to go up the lower price Nissan Leafs and other less expensive EVs? Doesn't seem like a head to head match.
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