Entering text into the input field will update the search result below

Ten Cents Mile Battery Replacement Penalty

Krypto profile picture
Krypto's Blog
143 Followers
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Summary

  • Batteries always die.
  • Lithium-Ion batteries rarely exceed 10 years of life.
  • Their death and replacement kill the BEV economy argument.

Let's be generous and say the average BEV gets 200,000 miles on its batteries. I think it is likely less, but stick with me here.

Let's assume such a 100KwH battery costs $20,000 to replace with a nice new one.

That's ten cents per mile to drive a BEV. ICE cars use less in gas expense per mile if they exceed 25 MPG and gasoline is less than $2.50 per gallon.

Analyst's Disclosure: I am/we are long TPL.

I do not own NIO stock nor am I shorting it.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.