Today Tesla believes they have entered a new level of excellence of electric cars and are now going one step further for the industry and automobiles in general. The way they are doing this is by not trying to make the best electric car that can compete with conventional fuels, rather they are trying to surpass this, and take the industry as a whole one step further. They believe that they are now capable of putting a car to market that would have a range of upwards of 400 miles per charge. But doing this would not make economic sense, that is not now. Nor is it necessary for them considering they are positioned pretty well to make a compelling fleet of over 400,000 cars with the development of their model 3 due out on a year or so.

“We could make a 400 mile range car today, like, that wouldn’t be too big of a deal. Its decreasing the cost per unit of energy of the battery packs so you can make the car affordable. That’s actually the important thing.” Musk told VOX media code.

today Tesla Vehicles have a range of about 250 miles or more, which is more than enough for most peoples day to day uses and needs for their vehicle.

“The Model S range is around 300 miles and that is quite a lot and its pretty rare that people need to go 300 miles at a time without stopping. So I don’t think we really have a range issue.” So again the major problem is how to reduce the cost of these exorbitantly expensive cars, that are priced at about $100,000 which is far too expensive for most consumers.

Thus Tesla is now going to great lengths to ensure they can reduce their price point of their batteries and technology in order to make it a more affordable alternative to the average consumer. They are doing so with the development of their gigafactory that is taking billions to build out.

“there are really two main dimensions along which cost optimization and making something available for the mass market can be achieved. One is design iteration, going through multiple versions of something, and the other is economies of scale. And you kind of need both of those things to make a compelling mass market product.” Says Musk.

Musk has already gone on as saying that Tesla aims to reduce the cost per unit of energy by more than 30% once the Giga factory is fully up and running.

“The cost would be too high and the useful load impact on the vehicle would be too high. We would have to fill up part of the front trunk and the tear trunk with batteries, we’d have to pinch a little bit on passenger room, but for us to do a 400 mile range car would be no problem.”

The long and short of things is that Tesla is being encumbered only by its financial limitations. If it were left to the quality of design alone they could pump out some pretty world changing designs.

 

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