New Battery Upgrade and Effect on Resale Values

igotzzoom · Feb 4, 2015

Now that Tesla has an operating battery swap station, it got me to thinking. I'm wondering that in the future, pre-owned Model S' will be marketed as having a "new battery" and if battery replacement will be offered as an up-front option at a reduced price (say $7,000-8,000), or simply offered as an after-sale upgrade. If Tesla is going to get into the business if selling CPO models, I'm wondering how much of a premium a new battery will add to the price of a CPO model S?

AmpedRealtor · Feb 4, 2015

igotzzoom said:
Now that Tesla has an operating battery swap station, it got me to thinking. I'm wondering that in the future, pre-owned Model S' will be marketed as having a "new battery" and if battery replacement will be offered as an up-front option at a reduced price (say $7,000-8,000), or simply offered as an after-sale upgrade. If Tesla is going to get into the business if selling CPO models, I'm wondering how much of a premium a new battery will add to the price of a CPO model S?

We'll have to wait and see.

scottm · Feb 6, 2015

My bill of sale (in Canada) shows the car price separate from the battery price.

It was the first time I'd seen a value for the battery broken out from the rest of the car.

And it was shockingly (ha!) lower price tag than I'd have expected... something like $11K for 85kW pack.

Don't know what regulation that's calling for this, or system that is being gamed, or what situation it helps to have the car price showing as something different, and lower, will battery hanging out there on the price sheet as what, a "non-car" item? Warranty laws? Insurance values??

If it wasn't Canadian law asking for the separation, then we have to assume it's to Tesla's advantage to show it separate. And maybe artificially lower than it's actually worth.

Maybe when the tractor battery fails, they say, its value is $11K and use that as the negotiation point for de-rating, etc... having you buck up the difference to get a replacement pack. In my mind, I'd think it would cost more like $20K to $25K.... and that's just a wild guess.

AmpedRealtor · Feb 6, 2015

scottm said:
My bill of sale (in Canada) shows the car price separate from the battery price.

It was the first time I'd seen a value for the battery broken out from the rest of the car.

And it was shockingly (ha!) lower price tag than I'd have expected... something like $11K for 85kW pack.

Don't know what regulation that's calling for this, or system that is being gamed, or what situation it helps to have the car price showing as something different, and lower, will battery hanging out there on the price sheet as what, a "non-car" item? Warranty laws? Insurance values??

If it wasn't Canadian law asking for the separation, then we have to assume it's to Tesla's advantage to show it separate. And maybe artificially lower than it's actually worth.

Maybe when the tractor battery fails, they say, its value is $11K and use that as the negotiation point for de-rating, etc... having you buck up the difference to get a replacement pack. In my mind, I'd think it would cost more like $20K to $25K.... and that's just a wild guess.

In one of the TMC threads last year or in 2013, I don't remember, an owner damaged the underside of his battery and his insurance company paid to have it replaced by Tesla with a refurbished unit. I believe the cost of the battery, including installation, was north of $45,000.

tom66 · Feb 6, 2015

AmpedRealtor said:
In one of the TMC threads last year or in 2013, I don't remember, an owner damaged the underside of his battery and his insurance company paid to have it replaced by Tesla with a refurbished unit. I believe the cost of the battery, including installation, was north of $45,000.

Parts for repair are often much more expensive than what they actually cost the manufacturer to make - I highly doubt it costs Tesla $45k to make the 85kWh battery.

AmpedRealtor · Feb 6, 2015

tom66 said:
Parts for repair are often much more expensive than what they actually cost the manufacturer to make - I highly doubt it costs Tesla $45k to make the 85kWh battery.

Referring back to the Scottm's post, Tesla sells its cars and all options for MSRP. If Tesla breaks out the cost of the battery on the bill of sale, it would be at MSRP and not Tesla's cost. If Tesla is citing the battery's internal cost to manufacture on the bill of sale, while showing all other items at MSRP, then something is amiss.

ChadS · Feb 6, 2015

Could the number on the sticker have been $10k (or maybe the amount is slightly different in Canada) to upgrade from the base model to the 85kWh pack?

If that's not the case, very interesting as I haven't heard of this before. It would be interesting to see a pic of the sticker if that's convenient to get.

scottm · Feb 6, 2015

It wasn't on a window sticker, it was on the paperwork.

It might have been phrased as a delta upgrade from the smaller 60kw pack, but that'd be weird way of doing things too...

Need to dig that item up, I show it when I do.

Kofi · Feb 6, 2015

New batteries would likely be attractive for on-the-fence buyers if they could choose it as an option with their CPO. It's amazing when you consider what it'd take to get a new motor for an ICE CPO.

FlasherZ · Feb 7, 2015

scottm said:
My bill of sale (in Canada) shows the car price separate from the battery price.

What you're seeing is the cost of the larger battery option as compared to the 60 kWh battery. That's not the cost, or price, of the battery pack. That's how cars' window stickers look in the US.

It's the same for ICE's - if the base model comes with a 4-cylinder, and you get a 6-cylinder, the corresponding line might be "Engine: 3.8L Supercharged V6, $1300". That doesn't mean the engine costs $1,300 -- it means the option is an added $1300 to the car's base price.

Panu · Feb 7, 2015

That $10K USD includes also Supercharging so the battery upgrade is $8K. "Low mileage" 85kWh battery was/is for sale in this forum for 17.5K USD. So the $8K is probably much more than it should be comparing to what 60kWh battery costs. Of course better warranty increases the price also.

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New Battery Upgrade and Effect on Resale Values

igotzzoom

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