Official: Replacement Battery Option

[NuclearPowered]

This is great to quell the naysayers rumors of insanely expensive battery replacements, but I would expect to be able to buy a much bigger batter then 85 kwh. 8% improvment per year over 8 years is about 180kwh. Even if it costs more, the range improvment would be too much to pass up.

[JakeP]

Yes it will be interesting to see the details on this when it is offered. If there is a provision that at time of replacement you can opt to upgrade to an even bigger battery (even for a fee), this would be fantastic, and would eliminate any concerns over an 85kWh being eclipsed by a 100kWh a few years from now.

[SteveH]

As cost is limiting me to 60kWh for now, I would love to think that we could upgrade batteries as some point in the future. But I am a little skeptical. I expect that the logic and wiring behind the scenes would have to replaced as well and this could make an upgrade impractical.

[dsm363]

Yes it will be interesting to see the details on this when it is offered. If there is a provision that at time of replacement you can opt to upgrade to an even bigger battery (even for a fee), this would be fantastic, and would eliminate any concerns over an 85kWh being eclipsed by a 100kWh a few years from now.

That's key. I wouldn't want to be locked into the same size battery pack if a larger pack was available (as you said , even if it was extra).

[Chas F]

I believe that battery tech 8 years from now will make this purchase not so good of a deal. I expect to upgrade to a bigger battery in 8 years (assuming I will need one by then, jury is still out on degradation). This could be 100kWh for less than $10K, from Tesla or a third-party. I think we will have too many more options by then to lock in now.

[Tommy]

It looks like a good deal to me. Remember the $40k Tesla was reportedly going to charge a certain infamous roadster owner for battery replacement last summer; this is basically 1/4 the cost for a bigger battery. If you buy the battery size for your needs now as Tesla strongly recommends, my back of the napkin calculations show the savings in gas more than cover the new battery cost. Of course it would be great if each battery size could be upgraded to a larger size, however buying the size you need now = peace of mind for me.

[Chas F]

Don't forget to factor in the opportunity cost of prepaying $12K for 8 years. My back of the napkin shows this as approx $5K.

[iridium]

A few questions came to mind when I read about the replacement option:

1) Do I have to purchase this now? In other words, am I basically buying an insurance policy or can I simply buy a new battery after 8 years.
2) Does this allow me to upgrade my battery? If I buy a 60 now, can I buy an 85 later for only 12k?

[NigelM]

Don't forget to factor in the opportunity cost of prepaying $12K for 8 years. My back of the napkin shows this as approx $5K.

Its about $3,300 based on 5% compound return after tax.

I think that much more important is the price of Lithium over the coming years. As demand increased during the past 20 years so prices have increased. If you assume that more EVs will mean more Lithium batteries then global demand will increase much further and basic economics says that prices will increase. Of course, that doesn't factor in any new battery technology that may come emerge.

[kendallpb]

I'm a bit confused, since GB doesn't really explain it. I would have to buy the option up front? But I have no idea (a) whether I'd need it in 8+ years, or (b) whether I'll even own the Model S in 8+ years. Why must one buy it now? I understand Bonnie's comment re. insurance, but one doesn't buy replacement tires or anything else up front (not even a replacement 12v battery), so why would I buy this up front...why not when I actually need it? Sorry if this is a stupid Q.

BTW how are Roadsters doing with their pack capacity so far--better than expected, worse, same, and/or varies wildly from car to car?