Tesla CEO Elon Musk Tuesday steered that the carmaker will have the ability to produce a “compelling” $25,000 automotive with totally autonomous driving functionality in three years. 

It’s a mission that, Musk defined, can be enabled by the corporate’s quest to halve the price of its cells per kilowatt-hour by means of a complete technique that appears on the whole provide chain and manufacturing course of—the main target of Tesla’s Battery Day presentation.

“It was all the time our purpose to attempt to make an reasonably priced electrical automotive,” mentioned Musk, referring again to his 2006 Tesla Motors Master Plan.

Musk mentioned that Tesla doesn’t but have a reputation for the $25,000 automotive, which might arrive in 2023 and eventually have the ability to meet or beat equal internal-combustion automobiles on preliminary buy value. 

Musk famous that sooner or later Tesla goals to divide its batteries right into a three-tiered strategy. Iron-based (lithium iron phosphate, or LFP) cells can be for what Musk known as medium-range. Nickel manganese cells can be for what he termed medium-plus and be for the majority of the lineup. After which high-nickel cells can be reserved for long-range purposes just like the Cybertruck and Semi. 

Tesla diversified cathode approach. - 3 tiers of battery cells

Tesla diversified cathode strategy. – 3 tiers of battery cells

He hinted, with the above slide within the background confirming it, that the reasonably priced automobile can be powered by LFP cells. Musk already introduced in July {that a} model of the Mannequin 3 for the China market will get an LFP pack and have a range of almost 300 miles.

Musk mentioned that the iron cells can be for power storage and for “medium-range purposes the place power density shouldn’t be paramount.”

LFP batteries have a powerful file for security and longevity and have been the chemistry of selection for China’s BYD in a variety of purposes for years—together with the Blade battery it makes use of in its new flagship Han EV.

Whereas a nickel-based chemistry would seem like twice pretty much as good, Musk cautioned that remark on the cell degree doesn’t translate to the pack degree—and that on the pack degree, that will be extra like a 50-60% benefit.

Tesla Semi

Tesla Semi

“For one thing like a semi truck it’s extraordinarily necessary to have excessive power density with a purpose to get lengthy vary,” he mentioned. 

If Tesla’s $25,000 automobile had been to reach in 2023, might it disrupt the market as a lot because the Model S did in 2012, or the Model 3 in 2017? Tell us what you assume in your feedback under.