Tesla Battery Pack Replacement Would be $36,000 Today, Musk Says

Tesla Battery Pack Replacement Would be $36,000 Today, Musk Says

By John O'Dell February 13, 2009

Company offering customers a 'pay now' discount on packs to be delivered in 2016;  opening 6 new showrooms

Something we missed in Tesla CEO Elon Musk's newsletter the other day: He says that the laboriously hand-assembled lithium-ion battery pack in the Tesla Roadster would cost about $36,000 to replace today, but should last at least 100,000 miles, or about 7 years.

To save customers some bucks down the road (and perhaps make a little cash investing the principal), the company is selling what amounts to Tesla battery replacement futures. Pay $12,000 now, Musk wrote, and reserve a replacement battery for seven years from now (if your original lasts longer, there will be a pro-rated refund; if you need a new one sooner, you pay a little more).

You are betting that Tesla still be be around in 2016 (we sincerely hope that's the case) and that the cost of a battery pack for the roadster hasn't plummeted by then.

Tesla apparently is betting that automated battery production techniques will have improved,  and raw material costs fallen, to the point that it can provide you a replacement pack then for $12K now and at least break even.

New Warranty, Showrooms

The company also is selling an extended warranty, for $5,000, that doubles the bumper-to-bumper (except battery pack) coverage to six years and 72,000 miles.

Musk also told subscribers to his newsletter that the company has signed leases for Tesla showrooms in Chicago and London's Knightsbridge district and is close to agreement on leases for showrooms in Manhattan, Miami, Seattle and Munich.

All six will open this year, he said

John O'Dell:  is an AutoObserver Senior Editor. Follow @AutoObserver on Twitter.