Wednesday, 29 May 2024

Tesla’s Revenue from Battery innovation

Battery innovation the two biggest factors hampering the mass adoption of BEV are range limits and high battery costs. In this regard, there are promising prospects for advancements in battery technology that will continue to improve range performance and reduce costs. The original acid-based electric car battery was very heavy, with a limited range of only about 60 miles. In comparison, lithium-ion batteries are significantly lighter, about the same size and almost five times the range.

For example, Tesla (Tesla stock price) next-generation lithium-ion battery weighs 500 pounds and has a cruising range of up to 300 miles. Although advances in advanced battery technology have already resulted in significant cost savings, BEV batteries are still relatively expensive. Lithium-ion batteries can represent up to 50% of the cost of a BEV, and the current price of the battery is estimated to be around $ 15,000. The main concern is the high demand and shortage of battery components that contain rare metals such as cobalt, manganese and nickel.

Typical breakdown of the production cost of lithium-ion batteries. Continued advances in research and development and expected economies of scale could result in significant price reductions in battery prices for the types required to make BEV prices more competitive. The US Department of Energy has set the achievable goal of reducing the cost of car batteries by 70% between 2010 and 2014.

Impact from Investors

The technology partners consisted of prominent entrepreneurs and investors such as Larry Page, Sergey Brin (Google), Jeff Skoll (eBay), and the Bay Area Equity Fund (operated by JP Morgan Chase). In May 2007, another round of investment exceeded $ 100 million. But when Ze’ev Drori became CEO and president of Tesla Motors in December 2007, the company was still burning money. The successful high-tech CEO was hired by Tesla Motors for just one year, then named vice president transferred to Musk and retired a few months later.

The growth of electric vehicles and the growing demand for these products are important for OEMs like Tesla. The sector is expected to grow rapidly in the near future as new entrants are ready to join and new technologies will have a significant impact on growing demand. The more players there are in the industry, the lower the price of key designs that are common across the industry, and the faster the success. Much of the success of next-generation technology is based on government laws and regulations that contribute to a technology’s success. The shift in demand to new emerging markets in Asia and South America poses new challenges for automakers. If you want to invest in the stock of Tesla, you can check its balance sheet at