Please ensure Javascript is enabled for purposes of website accessibility

Report: Tesla Battery Research Work May Pay Off Soon

By Howard Smith – May 14, 2020 at 1:52PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

New lower cost and longer life batteries may soon be used in the Model 3 sedans made in China.

Electric vehicle maker Tesla (TSLA -1.10%) plans to unveil a new lower cost, longer life battery for its China-made Model 3 sedans, according to a Reuters report. Tesla expects the new batteries, which will be introduced later this year or early next year, to bring electric vehicle costs down to levels in line with internal combustion engine vehicles, the report says. The report also said the new batteries are expected to be able to be repurposed for use in electric power grids. 

In the company's earnings conference call on April 29, CEO Elon Musk said the company will hold a "battery day" possibly in the third week of May (that's next week), though he didn't give a specific date. Musk said, "I think it would be one of the most exciting days in Tesla's history."

Artist's rendering of electric vehicle plugged into charging station and showing battery internals

Image source: Getty Images.

A team of researchers working with Tesla published an article in the energy journal Joule on April 30, showing a hybrid battery cell that could provide 20% more energy density than conventional lithium-ion cells. This would allow electric cars to go 20% further or reduce battery size, and cost, for similar charge distance limits. It is not clear if this specific research is what will be introduced at the company's battery day. 

Tesla continues to increase production at its plant in Shanghai, which opened late in 2019. It sold about 10,000 vehicles in China in March, and expects Model 3 production at the Shanghai factory to reach 150,000 vehicles per year. 

Howard Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$265.25 (-1.10%) $-2.96

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
104%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.