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Prepaid battery replacement

Some one crunch the numbers! It throws the whole " you have to spend 40k on a new battery" argument out the window.

It's not per paid. They quoted a replacement price, which means a Core was included in the math.

I have no idea how much the replacement pack really costs. What matters is the car owner only pays $10000 of of pocket when there older battery core is taken into account.

Take that Fox News (really TMZ should buy fox)

I would imagine you also get the same battery. If tech improves you will not get the 120kWh battery.... well you could but it would cost extra.

@Sudre_, are you sure? Does this mean that a 60kWh battery will be replaced by another 60kWh battery? So, is there no way to upgrade/downgrade batteries after 8 years?

~ Prash.

@prash. I would like to know that as well before I sign.

I believe Tesla has stated before that you can get a different battery. So you can gain additional mileage in the future. What you cannot gain if you get the 85Kwh for example, is supercharging ability

can someone please provide a link to the release or other source for the replacement option?

Again, it nowhere said that this is prepaid. I assume it merely a guaranteed price, which you can pay after eight years of ownership. By that time, there should be other, better, options, but you will be able to make the choice when the time comes.

This gives me great peace of mind to know that there will be a replacement battery at a reasonable cost. However, I fully expect to replace my battery with the new 170kWh version (of course, at a price of $20k). ;)

prash.saka, I would think you can upgrade you just have to pay the $10k difference (or whatever the price diff is in the future).

IMHO
An 85kWh battery buys an 85kWh battery
A 60kWh battery buys a 60kWh battery
A 40kWh battery buys a 40kWh battery

I really doubt you are going to be able to cash in a 40kWh core and get a 120kWh battery for free.

ah, it was covered in the price increase blog......

I'm actually quite amazed that Tesla would predict / sell battery packs for the 'distant' future. I would guess this is more of a marketing ploy for the neigh-sayers as it attacks the issue of controlled-cost battery replacement while confidently stating that Tesla is here for the long run.

The way I see it we are seeing the infancy of mass market electric vehicles. And if it's anything like my days at Apple Computer, the technology moves so fast that I would more likely expect to pay half price for twice as much battery in 8 years from now. (see also LED/LCD TV's example.)

Nothing stays the same.

+1 @dstiavnicky
Couldn't agree more.

The 85kWh costs $20k extra, but the replacement 85kWh battery is only $4k extra over the 40kWh replacement battery.

Again it's a replacement counting the Core exchange, exchange old depleted 40kwh for new 40kwh plus $8000,
Exchange old depleted 85kwh for new 85kwh plus $12000

The pack doesn't cost $12000. It costs the core exchange plus $12000., and it has nothing to do with upgrading.

And it's paid in 8yrs, 9 yrs, 10 years, if you feel you need to change the battery out after the warranty has run out. Not an added option now

The cost is a lot less than I anticipated and consider it great news. If in 8 eight years (or more, it said any time after 8 years, so if you kept your original battery 12 years then took the upgrade?)you get a new battery for $12,000 that totally helps with the higher price paid for the car. As long as you dont get bored driving the same car and can keep the car interior/exterior looking good, it certainly can be the last car you purchase - if you want it to be. Thats a huge bonus.

Yeah it's a good deal unless everyone else is putting banana peels into a Flux Capacitor!

(There needs to be a Bored Model S Reservation Holder thread for useless posts like this.)

I'd like a bit more detail on the 85kWh battery replacement.

1) Can this be purchased anytime? Or can you wait until you need it? I seem to recall the Roadster version was advanced purchase, but I could be wrong.
2) If prepaid, what happens if you total the car--is battery replacement transferable?
3) What happens if a larger battery pack is available at time of replacement? Are we stuck with an 85kWh pack? Or could we move up to 100kWh pack if it is available for a (nominal) fee?

I'm planning on keeping my car for 10 years at least, but I could see keeping it longer if things are still working well and I could get an even larger battery.

It's PREPAID.
GB's blog:
We have received many requests for a Battery Replacement Option. We are happy to now offer this option for all three battery variants. This option will provide you a new battery anytime after the end of the eighth year at a fixed price. Prices are as follows: $8,000 for the 40 kWh battery, $10,000 for the 60 kWh battery, and $12,000 for the 85 kWh battery. You will be able to purchase this additional option through your MyTesla page in the near future.

It's an option you purchase "in the near future". Similar to the Roadster $12K battery replacement option offered for a while.

From TM's POV, having the money for 8 yrs is worth about 40%, and battery costs should drop about 40% in 8 yrs, so the present $12K (e.g.) would enable TM to replicate an 85kWh battery by then and break even on it.

OTOH ... re-reading it, it sounds like it may mean that those are guaranteed prices "8 yrs or later", but you must buy the option now (for some price TBD). But if you don't opt in up front, you take your chances on battery costs 8 yrs+ in the future.

I dunno Brian. I think it could be read either way. You're right that offering it "in the near future" is unnecessary for something that won't be needed for at least eight years. On the other hand, he doesn't say that we need to buy it within, say, 90 days after getting the car. And he doesn't state an option price. Surely he doesn't expect people to pay $12,000 today for a new battery in 2020!

How exactly did the Roadster program work?

From TMC post:

It looks like MotorTrend got some additional info regarding the battery replacement option:

http://wot.motortrend.com/tesla-model-s-prices-bumped-by-2500-to-59900-b...

It mentions that the battery replacement would carry forward to subsequent owners, and you have 90 days from delivery to decide whether to exercise the prepaid option.

If you could afford $10K to prepay for a replacement for a 60kWh battery I think you'd be better off just getting the 85kWh in the first place.

@G.A.S.

You're so right and it was definitely funny!We need these types of post to amuse ourselves!

Seems to me that if they are guaranteeing a price of $12,000 8 years from now that if you do not take the offer, your cost will definitely be higher (even if the cost of the battery is lower than $12,000 to produce at that time)because they are not going to upset all the people who did prepay right? Then how much higher would it have to be to not upset the guy who prepaid 8 years earlier? I mean if it cost $14,000 in 8 years is that worth paying 12 now? To make 5% on your money,that would be $400 a year times 8 or $3200. If the price was not at least $15,200 8 years later, you would not make 5% on your money paid today. If the battery is $20,000 in 8 years, then it is well,well worth it. Thoughts?

Buy $12k in Tesla stock instead - you may be afford a new car instead of a new battery in 8 years...

"be able to afford"

Another thought is what if someone else makes a battery that goes 1000 miles and cost $5,000 for Tesla's car? Would tesla void warranty? Maybe this is a way Tesla keeps people buying their batteries? I know this one is out there but its just a thought.

@markapeterman

Totally agree.

The price list seems a good deal. IMHO, I'd think TM has a very positive opinion on the future pirces of batteries. This sounds really great to me, an EV supporter.

@markapeterman - absolutely!

I would like the option to pay for a replacement battery at the time I need it. How about everyone else? Paying 8,10 or 12k upfront for something you may never use, (car sold, totaled, whatever) seems like a bad investment decision. Not to mention cost of battery going down over time like other technology and improving over time, I just do not see the point in paying upfront. Does anyone actually see the cost of the battery replacement being higher in 8 years?


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