What goes into a Tesla Model S battery — & what it costs

Credit: Tesla/ Green Car Reports

Tesla's share price has recently risen substantially.  Obviously, this is predicated on future sales.  To date, Tesla has released for sale two electric vehicles which are priced outside the reach of most drivers, limiting the market.

On the other hand, this is consistent with Tesla's long declared plan for electric vehicle marketing:
• high performance sports car (Roadster)
• luxury sports sedan (Model S)
• mass market car ("no later than 2017")

All of the above depends on Tesla being able to take advantage of the falling price of lithium ion batteries.  This effect is demonstrated in the reduction in price, with improvement in practicality, from the Roadster to the Model S.

Recently this was questioned in a Barron's article.  Apparently Barron's used the difference between retail prices of two different capacity Tesla battery packs.  This appears to ignore the fact that retail prices include a markup.

Something else the Barron's article ignores is that while other manufacturers use custom cells, Tesla use mass market 18650 cells, which are available at a much lower price per kilo-Watt-hour (kWh).

http://www.greencarreports.com/news/1084682_what-goes-into-a-tesla-model-s-battery--and-what-it-may-cost 

Business Spectator:

http://www.businessspectator.com.au/news/2013/6/12/cleantech/tesla-shares-face-drain-pricey-batteries-barrons?utm_source=exact&utm_medium=email&utm_content=317257&utm_campaign=cs_daily&modapt= 

Barron's:

http://online.barrons.com/article/SB50001424052748703578204578523303280053948.html?mod=BOL_hpp_cover#articleTabs_article=1 / recent interview Tesla Motors CEO Elon Musk hung up reporter interview interviewing interest article debates obvious point dramatic reduction battery cost understand business apologies apologise apologize apologizing end ending interview story argued share stock price overvalued lithium-ion cells lithium ion LiIon power Tesla electric vehicles vehicle EV cost a great deal.   spend $400 per kilowatt-hour build battery pack Model S electric luxury sport sedan electricity charge recharge figure widely cited journalists write about Tesla The New York Times $10,000 market test contacted wholesaler offered purchase small number 18650 cell battery batteries pack packs pack company offered offer sell price roughly $350 per kWh including attached circuit boards group battery cells larger assemblies retail unattached much lower much less competing automakers paying automaker specialized large format Li-Ion battery pack thousands inexpensive commodity laptops automotive produced billions subject fierce competitive pressures signature characteristic computer consumer electronics industries industry including overhead pack enclosure connections between cells modules module sensors sensor circuitry lower pack costs cost other maker plug in plug-in electric cars redesign redesigned relatively simple cell less complex much lower manufacturing cost removing expensive safety systems built into each individual cell laptop battery safety mechanisms prevent fires large electronically controlled electronically-controlled, liquid-cooled liquid cooled battery pack safety features cell redundant heated cell design eliminates relatively complicated battery cap commercial cell replaces simple aluminum disk Panasonic investor /