True Price Of Tesla Model 3

The last month was a really turbulent time for Elon Musk. Everything that could go wrong, did, and our real life superhero stood tall and proud during the entire period (as always). At the very end of this turbulence, he announced the final touches for Tesla Model 3 and the release date for the next year.

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The conference was held in Reno, Nevada. The huge room was looking at one of the largest construction sites in the world right now. That construction site is slowly becoming a Tesla Battery Gigafactory. That “giga” part stands for its size because you can easily place 107 football fields in it… and you would even have some room for parking. It’s not just the construction site that is important. The entire idea can save our planet, and that is why we all love Elon.

What Is This All About?

General plan was to make electric cars cheaper, so anyone could buy it. We are not there yet, but we are going to be, very soon.

The first thing he had to do is to get cheaper parts. Since the technology is new, everything from resources to parts manufacturers is very hard to find. If something is hard to find, it means it’s very expensive, and on the top of all, Tesla has to pay for transport, since there is a distance between parts manufacturers and the assembling factory.

By constructing this factory, Musk is going to bring down prices for the battery itself. It is going to be ten times cheaper than in 2010. The goal is to bring the price down to 100 dollars per kWh. Why? Because the price of the battery controls the third of the car’s price. The current price is 1200 dollars per kWh.

The price of the battery is going to drop because of three reasons – cheaper materials, less manufacturing time and process automatization.

Time Saving

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Resources or raw materials such as lithium are nearer to the factory and Elon Musk is planning to make a railway system from Gigafactory to the car assembling factory. The railway is going to be over 240 miles long, all the way to the Fremont, Calif. So, resources are going to come into the factory, and the finished product is going to come out of it and straight to the assembling line.

In order to power that kind of a facility, he will build a solar power plant so he will not have to rely on fossil fuels at all. On the top of all “Tesla Motors” bought shares of “SolarCity” and merged those two companies into one big “Tesla” company. In future, every part of Tesla corporation is going to be powered by that merger, even the Gigafactory. And that can be a shadow of some greater plan, which shape is only noticeable.

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SolarCity

That brings us to the fourth stage of the plan. The Solar Power Plant, which can replace regular power plants by its independent nature. It started as Elon Musk’s experiment. He gave money and the idea to his cousins who founded the “SolarCity” company in 2006. Ever since it only grew larger and has its facilities in 20 jurisdictions. It’s basically using roofs to place solar panels which generate electricity. The power is used in those homes, but it can be also distributed and sold to the national grid. That same technology is going to be used in the Gigafactory.

Huge Price

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The entire plan will cost Elon Musk about 10 billion dollars in a period of ten years. That looks like too much money for us, common men, but for him, it is a perfect plan. If everything goes accordingly, Tesla Model 3 is going to cost between 35,000 and 40,000 dollars and it will bring an annual income of 20 billion dollars.

Elon Musk will have to build more factories since he has a projected number of 500,000 Tesla Model 3’s. He is considering Europe and Asia for his “all in one” factories.

“Tesla” will spread throughout the world and maybe it will save it. Who knows. It’s an idea.

We all have ideas. maybe some ideas that could change the world, but we don’t have guts to make them into plans and over time into reality. Elon Musk has a different mind. It’s like he doesn’t have any fear. You can see that in his gesticulation and sharp thinking during media conferences. It’s like he wants to finish that stupid waste of time called talking, quickly take off those shackles and just create something new. From video game and paying service to futuristic ways of transportation and green energy. Have you heard about the “HyperLoop“? That is another story.