Tesla Drops Price of 100 kWh Battery Thanks to Decreased Production Costs

When scaling goes right, consumers reap the rewards.

Bloomberg, via Getty Images

Good news if you're one of the many who don't want to wait to buy a Model 3: the highest0priced Tesla Model S just got a little bit cheaper overnight. The automaker updated its online configuration tool to reflect a decent (and unannounced) cost savings for prospective owners.

Tesla CEO Elon Musk's goal, outlined in his famous "Master Plan," was always to create a long-range but affordable electric car. Part of achieving that goal is to become proficient and efficient enough that mass-produced components become cheaper in the long run. In fact, just earlier this month, the Model X had a price reduction of $3,000, and today, Tesla's highest-priced model was again made cheaper, with a price drop of between $3,500 and $5,000, depending on specs.

  • Model S 100D: $94,000 (Originally $97,500; save $3,500)
  • Model S P100D: $135,000 (Originally $140,000; save $5,000)
  • Model X 100D: $96,000 (Originally $99,500; save $3,500)
  • Model X P100D: $140,000 (Originally $145,000; save $5,000)

Though the discounts came without warning, it's a refreshing thought to know that battery prices are falling. Especially with Tesla's Gigafactory already reaching for the sky with battery production numbers, this reinforces the idea that Tesla's scaling is actually producing results to reduce costs. As long as manufacturers can avoid the looming lithium-ion battery storage in the future, it seems like a clear path is being paved for the future of EVs.