By
Svetlana Soroka
April 18th, 2024
Million-mile batteries would help Tesla reach the goal it set five years ago. They would also take Tesla battery cost down below $100 per kilowatt-hour. Meanwhile, TSLA stock is up today.
The electric vehicle industry has reached a milestone as Contemporary Amperex Technology Co Ltd (SHE: 300750), a Chinese manufacturer of electric-car batteries for Tesla Inc (NASDAQ: TSLA), has developed a million-mile power pack.
Tesla started using CATL’s cobalt-free batteries in cars produced by its Shanghai plant since February, which enhanced the production of its Model 3s as well as cut prices and gained a market share from conventional premium automakers. Now, the company will benefit from CATL’s latest development.
According to CATL CEO Zeng Yuqun, the new batteries will last 16 years and 2 million kilometers (or 1.24 million miles). This is an incredible advance in comparison with about 150,000 miles or eight years the current warranties on Tesla batteries cover. In addition, the pack can be reused in a second vehicle. As a result, owning an electric vehicle would be less expensive, which is now extremely important as the industry is recovering after the loss of sales momentum due to the COVID-19 pandemic and oil price collapse.
For Tesla, million-mile batteries would help reach the goal it set five years ago. They would also take Tesla battery cost down below $100 per kilowatt-hour. Besides, they would be one of the pillars of Elon Musk’s strategy to make Tesla an energy company.
Speaking of Elon Musk and his ambitious plans, Zeng said:
“We’re getting along well and he’s a fun guy. He’s talking about cost all day long, and I’m making sure we have the solutions.”
Further, Zeng said that a “trigger point” for electric cars will occur once they overtake gasoline-powered vehicles, which will happen around 2030-2035.
Tesla to Bring Its German Gigafactory Online
In November 2019, Tesla revealed its choice of the next location to build a factory. The place chosen is Berlin. The Berlin gigafactory will produce batteries, battery packs, and seats, along with drivetrain assembly. It will also be employed in the final assembly of both Model 3 and Model Y EVs, along with other future models. The plant is set to begin operations in July 2021.
Last week, Tesla said it is planning to bring its Gigafactory Berlin online by the middle of 2021. Tesla has already become the most valuable U.S. automaker by stock-market value, but with this move, it will definitely revolutionize the world’s three most important vehicle markets — the U.S., China, and Europe.
As analysts have predicted, with a factory in Berlin, Tesla could boost Europe’s battery market to about 250 billion euros by 2025. Besides, the company will dent the European auto industry, starting with the German auto market.
Tesla (TSLA) Stock Up in Pre-Market
On June 5, Tesla stock closed in the green, adding 2.46% to $885.66. In early trading today, it is 1.76% up, $901.21 per share. Tesla’s market cap is $164.27 billion, before hours trading volume 26.7 thousand shares.
As Tesla shares have raced 110% higher this year, traders believe they could gear up for an even bigger rally. For example, Ascent Wealth Partners managing director Todd Gordon said Tesla stock is heading toward $1,000 per share. And it is possible with the company’s ambitious plans and constant expansion.
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