Tuesday, October 4, 2022
HomeTechTesla's Vehicle Production Costs Are At An All-time Low

Tesla’s Vehicle Production Costs Are At An All-time Low

Martin Viecha, a Tesla executive, laid out the company’s five-year strategy while discussing broad trends in the electric car sector at the Goldman Sachs technology conference. In his remarks, Viecha underlined that Tesla’s production costs have also been significantly cut.

Viecha says that the battery supply, which is critical for Tesla, has improved significantly already. In fact, it has no trouble supplying the battery cells it requires for both automotive and energy storage goods for the first time in years. It is well known that Tesla now collaborates with a number of battery manufacturers, such as Panasonic, CATL, and LG Chem, and they are continuously improving the process as company capacity grows.

Production costs per vehicle at Tesla are at an all-time low. Costs of production decreased by more than half.
Regarding the cost issue, Viecha notes that while Tesla’s production cost per vehicle was approximately $84,000 in 2017, it is currently only $36,000. Savings are attributed to improved vehicle manufacturing techniques and more effective plant designs.

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