Tesla Inc. (NASDAQ:TSLA) is far off from mass-production as it continues to polish its battery technology. In the just-concluded ‘Battery Day’ event, CEO Elon Musk affirmed they are far from getting their own cells in car batteries. The fact that the company still has prototype cells in cars underscores the fact that the batteries are still a work in progress.
Tesla Battery Technology Development
However, the electric vehicle giant has started ramping up the production of the cells at its 10GWh production facility. It could take some time for it to get to the 10GWh annualized production capacity. Musk has already admitted to high volume production challenges even as the company seeks to achieve orders of above 200GWh over the next 12 months.
Tesla is also far from delivering a million-mile battery, highly needed to support cars that would go over more miles on a single charge. The company’s stock dropped by more than 1o% as the company confirmed it is planning a series of incremental improvements to improve battery technology. To date, the company has achieved significant milestones on battery technology, battery costs having reduced by more than 50%.
Tesla $25,000 Project
Even as Tesla continues to work on improving its battery technology, it is also planning to take over the auto industry with a $25,000 car over the next three years. The $25,000 electric cars with autonomous features will be made possible by the company, dramatically reducing battery cells’ costs.
The company is currently working on tables battery cells that come with different materials on the inside of the cells, expected to halve the price per kilowatt. By halving the price, the company should be able to come up with electric cars that are almost the same price as combustion cars.
Currently, battery packs used in electric cars cost between $10,000 and $12,000 depending on capacity. By trimming these costs, Tesla should be able to come up with more affordable and higher volume cars highly needed to accelerate a transition from fuel cars to electric cars.
The model 3 was supposed to be Tesla’s first swipe of the broader auto industry. The car was to go on sale for $35,000. The dream never materialized as the automaker hit a number of roadblocks on the production phase, with battery costs taking the overall cost higher. Currently, the cheapest Tesla goes for $37,990 with the high end with enhanced performance going for $54,990.
Musk Microsoft Swipe
Separately, Tesla CEO, Elon Musk, has affirmed he was not happy by the way Microsoft Corporation (NASDAQ: MSFT) ended up capturing OpenAI groundbreaking autoregressive language. The software giant ended up signing an exclusive license for OpenAI’s Generative Pre-trained Transformer 3 in total disregard of the fact that the software was supposed to be open for everyone.
OpenAI has since refuted suggestions that Microsoft has full control and access to the groundbreaking autoregressive language. It insists people can still access the GPT-3 model through OpenAI API. On its part, Microsoft insists the deal only gives it unique access to the underlying code of GPT-3.