Tesla made a monumental announcement about batteries last week and everyone missed it

Tesla had a shareholder’s meeting last week and made an announcement which absolutely blew my mind. They believe they will be able to produce batteries for under $100/kWh with two years.

If you had told anyone in the industry that a company would be achieving these prices before the end of the decade, they would have smiled and told you politely that you have no idea what you’re talking about. A couple years ago, $350/kWh was considered the industry standard. Now look where we are.

These prices will have some truly impressive implications. It basically means that Tesla’s vehicles can be price-competitive with every vehicle in the market, and there will be nothing standing in the way of electric vehicles getting 80-90% market share except the time it takes to build the factories to build all these batteries and cars.

So we are now at the beginning of the real electric revolution: one where electric cars are not limited by technology or price, but rather by the rate at which companies can build new factories to produce batteries for these cars.

This is why Volkswagen recently announced they’ll be investing $48 billion in electric vehicle production. They are the first big auto company outside China to recognize how important it is to produce batteries at scale.