Therefore at $1,000 per kilowatt hour of battery storage GM has a cost of $16,000 per Volt for batteries. The $25,000 remaining per vehicle is plausible as this is a Chevy and GM can possibly make a small profit on each Volt at the stated price of $41,000. GM will subsidize folks who lease the vehicle though. They have stated their monthly lease charge will be $329 plus sales taxes. What they have not revealed is the upfront payment to enter the lease. Given the maximum eight year life of the battery pack and a ten year life for the rest of the vehicle the up front payment to enter the lease should be $10,000 in order for GM not to loose a bunch on the car.
There is a car called the Leaf that Renault / Nissan will begin to market that has a range of 100 miles on electric power and has no gasoline engine. Nissan has priced this car at about $32,000 and by my estimate the batteries in the car cost Nissan almost as much as their full selling price. Renault’s cost accountants must have attended the same business school as Tesla’s cost accountants who in turn attended the same business school as Bernie Made Off with the money. Ajay a close friend a super avid reader of the Green Machine asked me to rename the Volt, the Leaf and the Tesla. For now I will let the Volt keep its name as it is tending to be priced at what it costs. I will not judge if it is priced for what it is worth as there is no economic justification for anyone to buy this car. The Leaf on the other hand will have an advertisement that will be “how do you spell re-leaf?” The answer is of course spelled “Failure”. As for Tesla I got to say that Elon Musk has Big Teslacles to provide pure fiction to investors, and government to fund his tail pipe dream. Those who buy the Tesla must have had the benefit of a large Testacy. Lexus has the IS, GS and LS, the Teslacle just has the BS.