Business Standard

A slower road ahead: Why building an electric car is so expensive, for now

Musk says innovations and in-house manufacturing can quickly halve that expense, while most competitors see a slower road to reach price parity with gas guzzlers

Tesla Charging Station
Premium

Costs aren’t expected to keep falling as quickly, but lithium-ion packs are on track to drop to $93 per kWh by 2024, according to BNEF forecasts. (Bloomberg)

David Stringer and Kyunghee Park | Bloomberg
At Tesla Inc.’s ballyhooed Battery Day event in September, CEO Elon Musk set himself an ambitious target: to produce a $25,000 electric car in three years. Hitting that sticker price -- about $13,000 cheaper than the least expensive model today -- is seen as critical to deliver a true, mass-market product. Getting there means finding new savings on technology, most critically the batteries that can make up a third of a vehicle’s cost. Musk says innovations and in-house manufacturing can quickly halve that expense, while most competitors see a slower road to reach price parity with gas guzzlers.

1. Why are

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 23 2020 | 9:41 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com