performance comparisons, most powerful battery, tesla, tesla battery

Tesla Model S @ $80,000: What a Deal!

Tesla’s TSLA Model S stands out among electric vehicles (EVs)… and, not just for looks! Of the top ten selling EVs in the United States, the Model S has the most powerful battery – 85 kWh. As shown in the chart below, in performance comparisons all other EV batteries are one-third its size, at the most.1

VehiclesByBatterySize, performance comparisons

Why do kilowatt hours (kWh) matter? Because they determine range and power output: more kWhs enable greater range and faster acceleration.2

When analyzed through the lens of kWhs, Tesla’s value proposition shines. As shown in the chart below, per kWh Tesla is selling for 5-10% less than the Nissan NSANY Leaf, and 40% less than the BMW BMW i3. The Model S sells for $1,100 per kWh, compared to the more than $1,800 for the i3.

EVPricePerkWH, performance comparisons

Auto buyers seem to have done their homework. While the Model S, selling for $80,000, does not have the highest unit sales volume, it does have the highest dollar sales volume among EVs. Compared to Tesla’s nearly $800 million in sales so far this year, the best unit selling Nissan Leaf, retailing for $29,000, has only $550 million in sales, and the Chevrolet GM Volt, at $34,000, $450 million.

TopTenEVs, performance comparisons

While on the surface the Model S seems expensive, performance comparisons prove that Tesla is providing real value for the money. As it expands into China, it can leverage this strength to position itself as the best EV in the market as measured not just by performance, but also by value.

  1. Larger battery pack size will increase acceleration but may decrease efficiency.
  2. Pure EVs only. Plug-in hybrid are not included in this comparison, but their batteries are even smaller.

The information provided is for informational purposes only. It does not constitute any form of advice or recommendation to buy or sell any securities mentioned. It is intended only to provide observations and views of the author(s) at the time of writing, both of which are subject to change at any time without prior notice. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on ARK's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Past performance is no guarantee of future results. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. For a list of all purchases and sales made by ARK for client accounts during the past year that could be considered by the SEC as recommendations, click here. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. For full disclosures, click here.