Tesla Model 3 Battery Capacity Finally Revealed
At Long Last, Elon Musk Reveals the kWh Rating of the Tesla Model 3
Updated August 29, 2017
The Tesla Model 3 is an incredible machine – it has a range of approximately 200 – 300 miles, gobs of torque and a starting price of under $35,000. There’s no shortage of Model 3 coverage both online and in print, but until now, one piece of information has been missing: the kilowatt hour ratings.
Elon Musk finally revealed Model 3 battery capacities during a conference call with Goldman Sachs. The output is just over 50-kilowatt hours (kWh) for the entry-level Model 3, which will provide 220 miles of range. More expensive trim levels will get a battery cranking out 75 kWh and a range of around 310 miles.
This information is important to consumers and investors alike because it gives a better idea of the car’s profitability. Some estimates had forecast Tesla as losing $13,000 on each model 3 sold, but Musk plans to earn a 25% gross margin on the cars. To ensure this happens, Tesla must reduce the price per kWh.
Hopefully, the new Telsa Gigafactory will help accomplish this. Musk said it costs less than $190 to make 1 kWh worth of battery and that the new facility is predicted to decrease cost by 35%. With the Gigafactory and its competitors looking to flood the market with battery packs, we should seeing a cost reduction to less than $100 per kWh by the end of the decade.
If the price per kWh continues to drop, we may all be humming around in electric cars very soon.