CEO Elon Musk sketched Tesla Inc.’s plan to cut electric vehicle battery design and manufacturing costs that a $25,000 car that drives itself will be possible.
Musk acknowledged that Tesla does not have a new vehicle and battery designs and manufacturing processes. The company has frequently missed targets of manufacturing.
Investors expected two significant announcements at Musk’s Battery decision on Tuesday: The development of a “million mile” battery good for ten years and a specific cost reduction target.
Musk offered neither of them, while he promised that for the next several years to slash battery costs to half with new technology and processes and would ramp up with an “affordable” electric car.
Musk introduced a generation of electric vehicle batteries that would be more powerful, long and half as expensive than the company’s current production cells.
Tesla’s new cylindrical cells would give five times more energy, six times more power and 16 per cent more excellent driving range.
Musk in July also said Tesla was open to license and supply powertrains and batteries to other automakers.
Tesla on Tuesday introduced a new Model S Plaid, a 520-mile range sedan that could reach top speeds to 200 miles per hour, with deliveries starting in 2021.