USB 'less bad'

[bwilson4web]

Source: https://www.marketwatch.com/story/t...-ubs-says-2018-11-20?siteid=yhoof2&yptr=yahoo

Tesla Inc.’s batteries are actually cheaper to produce than analysts at UBS had estimated, thanks to economies of scale and chemical composition, keeping the Silicon Valley car maker ahead of the competition, analysts at UBS said in a note this week.

In the latest in a series of notes based on complete teardowns, UBS analysts led by Colin Langan estimated that a Tesla TSLA, -3.65% cell cost will reach about $111 per kilowatt/hour versus a prior estimate of $148 per kWh.

That implies that the Model 3 cost will be about $1,960 lower than UBS previous estimate once the cells are at scale, they said.
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USB has history being negative about Tesla but sometimes, reality interrupts their pique.

Bob Wilson

 

[Pushmi-Pullyu]

Bob Wilson (bwilson4web) quoted:

In the latest in a series of notes based on complete teardowns, UBS analysts led by Colin Langan estimated that a Tesla TSLA, -3.65% cell cost will reach about $111 per kilowatt/hour versus a prior estimate of $148 per kWh.
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That's getting a lot closer to Tesla's actual cost, but I think it's still slightly inflated. Elon said in a recent Q&A session that Tesla hoped to get down below $100/kWh for cell cost by the end of this year. It's not impossible that it's $111 now, but odds are that the price isn't going to drop >10% in such a short time.

Therefore, I think Tesla's cost for 2170 batteries is currently a bit lower than that $111 estimate... but likely not that much lower.

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