Profitability: Telsa's Battery Strategy Vs. Nissan's

$57,000 Tesla Model S electric car, which uses cells similar to those in laptops, is designed to make money at 20,000 annual deliveries.

Published: 30-Dec-2010

Tesla Motors Inc., the electric carmaker backed by Toyota Motor Corp., said cheaper batteries will make its Model S sedan profitable with much lower sales than Nissan Motor Co. is seeking for its Leaf car.

The $57,000 electric Model S, which uses cells similar to those in laptops, is designed to make money for Palo Alto, California-based Tesla at 20,000 annual deliveries, Chief Technology Officer J.B. Straubel said in an interview. Nissan Chief Executive Officer Carlos Ghosn has said combined battery- car sales for Nissan and affiliate Renault SA may need to reach 500,000 vehicles a year to be profitable without government aid.

Nissan’s choice of a larger type of lithium-ion battery means “they will have a cost challenge that will be more difficult to solve,” Straubel said yesterday in an interview. “It will require a lot higher volume before they really get to a cost point that is internally sustainable.”


Tesla Roadster recall affects 439 vehicles

12V auxiliary cable chafing in one car lead to short circuit. ID numbers below 500 are not affected.

Tesla Model S will come in three version with different ranges.

Model S battery pack is flatter and nearly the width and length of the car, and is embedded in the floor of the electric car.

2009-2011 Toyota RAV4 Sport is due for major facelift, including all-electric drive option being developed by Telsa Motors

Agreement is in addition to $50M Toyota paid for shares of Telsa in July 2010.


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