The Biggest Competitiveness of Tesla is Battery Price
According to the report, the cost of battery cells supplied by Tesla from Panasonic, LG Chem, and CATL was an average of $142 per kilowatt-hour (kWh), much cheaper than GM’s $169 and the industry average of $186.
The gist of the report is that Tesla can lead the industry in the manufacture of battery packs for electric vehicles through the development of innovative battery packs by receiving battery cells from suppliers at a much lower cost than other competitors.
According to data, Tesla’s battery pack cost an average of $187 per kWh, GM’s $207, and the industry average $246. According to Sam Jeff, Connerty Research adviser, Tesla has been actively pushing for cost savings over the past decade, saying that Tesla‘s battery pack is 10% lower than GM and 24% cheaper than other automotive industries.
Analyst Sam Jeff said that Tesla‘s strengths stem from Tesla’s relentless pursuit of low battery costs as well as the size of its electric vehicles. Battery packs are known to account for a large proportion of the cost of manufacturing electric vehicles.
At Tesla Battery Day held in September last year, Elon Musk announced that he would lower the battery price by 56% per kilowatt-hour compared to today. He announced his plans to make it.
Tesla plans to create a ‘4680’ battery that will replace the existing cylindrical battery in order to lower the battery price. The 4680 cylindrical battery applying the tapless method simplifies the process, reduces the size and heat generation, and reduces the unit cost compared to the existing battery.
According to the report, Tesla is expected to remain at the forefront in battery cell and EV battery pack competitiveness through the next decade. However, GM is also expected to close the gap and approach the Tesla battery level by 2030 in terms of price.