As Batteries Drop in Price, Electric Cars Get Cheaper Too

Tesla’s cheapest car is currently priced at $38,000, but the American e-vehicle manufacturer may soon sell a Tesla car for no more than $25,000, thanks to its plans of making its own battery packs.

Currently, that price is only beaten by Škoda, who sells its electric Citigo for around $20,000. For Elon Musk, CEO of Tesla, the key to lower the overall price of the car is to reduce as much as possible the costs of production. Therefore, the electric car company will manufacture its own “fully autonomous” battery and cell.

As of now, batteries are already around 87% cheaper than ten years ago. In order to meet the 2023 deadline, Tesla will soon open a lithium and cathode plant in North America instead of outsourcing the production of batteries in Japan and China.