Elon Musk and his well-known company Tesla Motors made two announcements this week that have people talking. One was a quiet move to start selling used Teslas, which was overshadowed by an announcement for a new, revolutionary battery. Tesla wants to sell more cars and batteries, whether the batteries are actually put in the Teslas is up to the buyers.
Tesla is expanding its business beyond selling luxury electric cars. The company is now directly offering pre-owned Model S sedans, which come from owners who traded them in to upgrade to the new dual-motor P85D.
To buy one, the company requires a $1,000 deposit when selecting the car. The buyer then has the option to pick it up or to pay a fee to have it delivered. As of this week, the sedans are available in 11 markets, including New York, Los Angeles, Washington, D.C., Florida and the San Francisco Bay Area. Though used, the Teslas are unsurprisingly nowhere near cheap. The cheapest one being sold is in Cleveland, with an asking price of $60,500. The most expensive one is being sold in New York for $105,250, with only 231 miles on it. Buyers are, however, given a four-year, 50,000-mile warranty on the car and the same eight-year, unlimited mile warranty on the battery pack and drive unit as new Teslas. This way, if the lithium-ion pack running the car stops working, the buyer will probably be covered. Despite the prices, Teslas are innovative vehicles with low mileage due to their lack of an exhaust system and tried-and-tested electric batteries.
Musk announced that Tesla batteries, however, will be able to do more than power cars. Musk unveiled a series of Powerwall batteries on April 30, which he says will be the future of not only Tesla Motors but more generally of energy consumption. Why is that? Tesla Energy and Powerwall batteries can be used to power homes and businesses. At a press conference in Los Angeles, Musk enthusiastically said that the company’s lithium-ion batteries would help economies move to low-carbon energy sources. They will be marketed in different sizes and begin at $3,000. Although there is still work to be done, Tesla is working to make the technology less expensive for widespread use. Khobi Brooklyn, a Tesla spokeswoman, told the New York Times that the company has “obviously been working on building a world-class battery, a super efficient and affordable way to store energy. It’s just that we’ve been pitting the battery in cars most of the time.”
It is indisputable that Tesla Motors has become more than an innovative automotive company. Musk describes its goal as changing the way the world uses energy “at the extreme scale.”