Lithium Ion battery prices have come down 40% since 2010 (see third graph[1]), and that is /caused/ by the increasing demand (it's called a manufacturing learni

Lithium Ion battery prices have come down 40% since 2010 (see third graph[1]), and that is /caused/ by the increasing demand (it's called a manufacturing learning curve[2] of which Moore's law is just an example). Tesla's strategy is to drive volumes with gradually more affordable cars to bring down battery costs until there is a crossover where gasoline cars are impractical. That also explains the Gigafactory and the wall battery. So far, it's working. [1] http://rameznaam.com/2013/09/25/energy-storage-gets-exponentially-cheaper-too/ http://rameznaam.com/2013/09/25/energy-storage-gets-exponent... [2] http://www.strategosinc.com/articles/strategy/learning_curves.htm http://www.strategosinc.com/articles/strategy/learning_curve...