Published on July 18th, 2014 | by Christopher DeMorro83
Wall St. Analyst Wants Elon To Exit The EV Market
July 18th, 2014 by Christopher DeMorro
They say that Wall Street is detached from the rest of America, and after hearing a story like this, it’s hard to disagree. A financial bond “guru” is urging Elon Musk and Tesla Motors to exit the EV market, and focus instead on building batteries. Boy does this guy miss the point.
EcoWatch reports that financial analyst Jeff Gundlach went onto Bloomberg radio, where he dishes out his idea that the world’s foremost maker of electric cars should get out of the car business. “I just think that the battery technology that Tesla has created is so far ahead of everybody else that it could really have broad uses,” Gundlach said. “If I was running BMW or GM or Ford, I think I would be open to the idea of just buying the batteries from Tesla.”
Boy, this guy couldn’t be more off point. Tesla’s battery technology is not that far ahead of everybody else; the only difference is the size of their battery. The battery chemistry is largely the same, though Tesla prefers to use thousands of small laptop batteries versus the larger cell setup of cars like the Nissan LEAF and Chevy Volt. But whereas those cars have 24 kWh and 16 kWh batteries (respectively), the Model S starts out with a 60 kWh battery, and can be as large as 85 kWh…more than three times the size of the LEAF battery. Triple the 81 mile range of the LEAF, and you get just over 240 miles, within spitting distance of the 265 mile EPA-rated of the Model S.
More importantly than any of this though is the fact that Elon Musk’s stated goal is to make every car on the road an EV. He’s also opened up his patents to the world, meaning anybody that wants to use his battery technology can use it.
This guy might be wealthy, but that doesn’t qualify him as an automotive expert. Stick to your mutual funds buddy, and let’s let Elon stick to what he does best; build awesome electric cars.
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