06-17-2017, 01:07 PM
Note that the Bolt batteries are rated at 60 kWh even though their actual capacity is likely to be higher by about 5% or possibly more. Nevertheless, for this article, we will assume the battery size to be 60 kWh. This battery size implies that GM's battery pack cost is in the range of $138 to $165 per kWh. This is a stunning range and well below any analyst prognostications we have seen to date. While the low end of the range appears somewhat unrealistic given the last GM disclosed cell costs of $130 per kWh, the high end of the range certainly appears to be reasonable. (For reference, we have modeled GM's battery costs at $170 per kWh). To err in favor of Tesla, we would estimate that GM's pack level costs are closer to the high end of the range at $160 per kWh. What does this mean to Tesla? Not very good news, we believe. Part of the Tesla myth is built around its supposed battery cost advantage. The last known official number on Tesla battery costs comes from Jeff Evanston, VP of Investor Relations, and is supposed to be under $190 per kWh as of April 2016.
Tesla May Be At A Significant Battery Cost Disadvantage - Tesla Motors (NASDAQ:TSLA) | Seeking Alpha