Tesla Bets on Better Batteries: How Tesla's Meteoric Rise Could Affect Electric Utilities in the Near Future

If you've ever used the Internet or if you're into cars, chances are you've heard the name Elon Musk. While you may be thinking it's a name for a cologne that came out in the 70s, he's a primary reason our clients have been so focused on understanding the desirability for these space age (get it?) vehicles and how best to service and incentivize people to purchase them.

Key Takeaways
Tesla is moving battery manufacturing in-house. Which is great news for the environment. As a result, Tesla is able to develop methods to squeeze every ounce of efficiency out of their batteries. Tesla hopes that moving battery manufacturing in-house will help pave the way to lowering costs for producing Electric Vehicles.

Teslas are about to become more affordable. Currently, the Tesla Model 3 (currently the cheapest Tesla available) sells for about $35,000 a pop. Musk hopes that within three years, Tesla will offer an Electric Vehicle priced at a much more affordable $25,000 and be fully autonomous. And with 53.5% of people saying high price point is a barrier to purchase, Tesla is about to capitalize on a previously untapped market: the Average American.

Teslas are about to be everywhere. Elon Musk hopes to eventually sell 20 million vehicles annually, about 50 times more than it sells now. $25,000 fully autonomous vehicles would certainly make that goal much easier to achieve. With nearly 20.5% of Americans considering purchasing an electric vehicle in the next 3 years, Teslas have the potential to be as mainstream as bottomless mimosas.

What This Means for Utility Companies
Using 34kWh / 100 miles on average, utility companies, especially electricity providers, need to be prepared for a rapid increase in electricity consumption in a relatively short time span. With the average American driving 13,476 miles per year, each Tesla consumes about 4,581kWh annually. Couple the estimated 600,000 Teslas already on the road in the US with an ambitious goal of 20 million units sold per year, electricity providers need to make sure their systems can handle the increased load demand.