Tesla To Launch Low-Cost 'Million Mile' Battery That Drastically Reduces Cost Of EVs: Report

Electric vehicle pioneer Tesla Inc TSLA is going all out to make alternative energy vehicles more affordable for consumers.

Tesla Working On New Battery  

The Elon Musk-led company is working on a new battery for its Model 3 vehicles in China that confers two advantages, low cost and long life, Reuters reported Thursday. 

More details could be come at Tesla's Battery Day, with Musk hinting on the first-quarter earnings call that the event could be held in the third week of May.

When asked for a preview of the event, Musk said: "We want to leave the exciting news for that day, but there will be a lot of exciting news to tell. And I think it would be one of the most exciting days in Tesla's history."

Competitive With Gasoline Vehicles

The new batteries are reportedly made to last for 1 million miles, which would help sell Tesla's EVs at the same price or less than a gasoline vehicle, Reuters said, citing people familiar with the plan.

"With a global fleet of more than 1 million electric vehicles that are capable of connecting to and sharing power with the grid, Tesla's goal is to achieve the status of a power company, competing with such traditional energy providers as PG&E Corporation PCG and Tokyo Electric Power," the report said.

The report also said the new battery is being developed in partnership with CATL, with a team of academic battery experts recruited by Musk also pitching in their expertise.

Tesla shares were down 1% at $795.29 at the time of publication Friday. 

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Photo courtesy of Tesla.