Tesla Model S sedan will employ low cost battery to to remain profitable

Telsa Motors Inc is going to install cheaper batteries on its Model S Sedan in a move that the company believes will make the vehicle cheaper. This in turn will ensure company’s profit bells continues ringing. They are comparing the sales figures with that of the Leaf Car from Nissan Motor Co. The price of the electric Model S from Telsa is going to be $57,000 as per the company Chief Technology Officer, J.B. Straubel. The battery is similar to the ones used on laptops and with this, Tesla expects to find at least 20,000 buyers of the vehicle annually.

The figures that Nissan is looking for with the combined battery and car sales to get a reasonable profit is about 500,000 units on an annual basis. This is as per the company CEO Carlos Ghosn. Only then, as per him would the company make profit without any government aid.

Using lithium ion battery as per Straubel is a difficult game that Nissan is venturing into. The volume of sales has to be very high for the company to gain some from this venture. Sale figures of the rechargeable Roasters from Telsa have been worth $109,000 since 2008. These are all powered by thousands of small lithium-ion cells which are similar to the ones used on laptops. With these sale figures Telsa has not yet been able to show any profit. They however expect the cost of the battery to go further down for the company to effect profit thereafter.

Source: 4wheelsnews

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