Advanced Automotive Batteries’ Dr Menahem Anderman has prepared something of a case study on Tesla, and the findings indicate battery prices will be a major hurdle.
With all things considered, the report predicts an arrival-price for the new Model III of around US$50,000 (AU$56,800), rising to as high as US$80,000 (AU$90,889).
The latter would be a worst case scenario, as even the larger and upmarket Model S will soon be available in Australia with a comparable starting price.
But a US$50,000 price would see the Model III thrust into BMW 5 Series territory, which has a starting price in the US of around US$49,500 (AU$56,238).
The Model III is unlikely to be a match for the 5 Series on size, performance or perhaps even prestige, but the ‘X-factor’ that comes with the Tesla badge means it’s still every chance of becoming an instant success.
Recent reports suggest Tesla is close to cracking the $200/kWh price point, and Mr Musk has previously predicted that price will be halved by 2025.
Dr Anderman’s predictions are less optimistic, foreseeing a price of $167/kWh in the year 2025 with the price to stay above or close to $200/kWh until at least 2020.
The Tesla Model III is due to hit the market in 2017.
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