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In addition to cost, Tesla is also exploring innovations in battery technology, such as lithium iron phosphate (LFP) batteries, which offer a more affordable solution compared to traditional lithium-ion batteries. As production ramps up, analysts predict the cost of batteries could drop significantly, with aspirations for prices as low as $25 per kWh by 2027.
Unlimited Market Potential
One of the critical factors driving Tesla's ambitions in the energy storage space is the concept of Total Addressable Market (TAM). Elon Musk and his team assert that the potential for growth in energy storage is virtually unlimited. As the demand for energy storage solutions increases, Tesla aims to capture a significant portion of this market.