Iron Man ⚡
With so many new companies entering the EV industry every day, OG’s like Tesla must ensure their output of product maintains a very high standard to keep the throne. Demand has seen a strong trend of growth with iShares Self-Driving EV and Tech ETF doubling in value since March of 2020, but what is keeping Tesla ahead of the game, or at least not in a losing position. Well, the secret ingredient is each Tesla’s battery, more specifically each car’s battery life. For example, Tesla’s long-range Model S promises to drive roughly 370 miles without stopping for a charge — about the distance from San Francisco to Los Angeles. In comparison, other companies don’t even hit the 300-mile mark. The reason Tesla has been able to do this is because of the risk they take in designing the product. The company has been designing battery-powered vehicles from scratch and utilizing software to make the batteries more efficient. Tesla has also scrapped many traditional luxury features that add more weight to the car in favor of aerodynamics. Even on the mechanical level Tesla has ditched multi-gear transmissions in favor of dual motors programmed to power the front and rear wheels.
One of the most recent moves from Tesla is a battery material switch. Elon Musk declared that Tesla is looking to make a “long-term shift” toward older, cheaper lithium-iron-phosphate (LFP) cells for entry level vehicles and energy storage products. The battery will be majority iron-based which helps as iron is available in large supply around the world and is cheaper than other materials – helpful in bringing down the cost of the vehicle. What do you think about the move by Tesla? And will it help boost sales?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.