By most estimates, the battery for the Model S that I drove should cost between $42,500 and $55,250, or half the cost of the car. But (Tesla Tech Officer) Straubel indicated that it is already much lower. “They’re way less than half, actually,” he says. “Less than a quarter in most cases.”
Straubel says more can be done to lower batter costs.
As battery costs decline, Tesla may also be able to offer more range on its existing cars and models. If the range were, say, 350 miles plus their market would presumably be larger. A mid range car becomes more likely. IMO, an inexpensive everyday car would seem more likely to be made by a monster car company, perhaps paying Tesla for licenses for battery and other tech.
What can happen depends on whether the cost means cost per kw-hr with a size decrease or not. Tradeoffs with capacity/cost/performance are possible driven by marketing, costs, and engineering. ie, business.
And they have no interest in lowering the sales prices, correct? Because people like to pay more and more every year. Someone buying a P85+ in end of 2012 is hoping to pay $15K more in 2015 and as time goes by, more per year. All in the name of margin going up. Please sir, may I pay more?
If the competition didnt benefit more from the reduction you would be correct., Think it through, as the pie gets sliced thinner, margins will shrink. Tesla has been left alone til now with BMW, Mercedes, Porsche, and everyone else building an EV
The everyman EV will be made by Nissan, Toyota etc and will make it impossible for Tesla to come downmarket and have a decent margin.