Tesla, Inc. (NASDAQ: TSLA) took a substantial step towards entering the market for the mass market vehicles as their Gigafactory has begun the manufacturing of battery cells for the Model 3.
The Model 3 is noteworthy due to its steep lower range of prices compared to current vehicles from the automotive giant. While the Model 3 will have a range of 215 miles, which is similar to the current cheapest models, the anticipated series will cost significantly less. Currently the cheapest series, the Model S starts at $70,000 and is almost double the Model 3’s $35,000 price.
The difference in cost may mostly be attributed to Tesla’s increase in efficiency during the manufacturing batteries.
The innovative auto-maker previously announced in January earlier this year, that they would being the production of these batteries during the second quarter. Right on schedule with their upcoming line of mid-priced vehicles, Tesla’s Gigafactory was built mainly to solve concerns of high costs of the production batteries for vehicles.
The decrease in price also stems from the new designs for battery packs. Tesla will be making these batteries using nickel cobalt aluminum oxide battery cells for its vehicles. While CEO has been reluctant to reveal any key details to his product, he boasted these new batteries as the “highest energy density cell in the world and also the cheapest”.
Tesla currently plans to only include these batteries in the Model 3 to meet the growing demand for the series, but company plans to incorporate the revolutionary battery in the Model X and Model S in the future as well.