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.”

<< PREVIOUSNEXT >>
RELATED NEWS ITEMS

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.

READER COMMENTS

blog comments powered by Disqus