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BMW exec expresses reservations on electric car battery costs: ‘It’s a nightmare’
BMW board member Klaus Frölich recently expressed his reservations about the costs of batteries in electric cars. In a recent statement, the 58-year-old senior BMW executive noted that electric vehicles would “never” be less costly than cars powered by fossil fuels.
Frölich, who played a part in the development of the company’s electric mobility initiatives like the BMW i3, noted that the culprit for the costs of EVs will always be their batteries. The senior executive stated that lithium-ion cells that can store the standard 1 kWh unit of electrical energy cost around €100 to €150 ($114 to $172). Thus, in electric vehicles with battery packs that are 90-100 kWh, the cost of the battery alone would always be incredibly high.
“It’s very simple. You can produce whole cars, only with the cost of the battery,” he said.
Frölich further elaborated, stating that the costs of lithium-ion batteries would likely remain costly, even if they are being produced in large quantities. The senior BMW exec notes that cobalt, in particular, would probably keep battery prices high, since it is a crucial ingredient of lithium-ion battery cells. That said, Frölich stated that BMW is nonetheless working to secure low prices for cobalt until 2030.
“When everybody wants to have cobalt, the prices of cobalt will not go down, they will go up. So, it’s a nightmare that an electrified vehicle will cost the same as a combustion-engined car,” he said.
While Klaus Frölich’s latest remarks could easily be dismissed as criticism from an electric car skeptic, the executive is anything but an EV naysayer. Over the years, Frölich has played a key part in the development of BMW’s green vehicles like the i3 and the faster, more attractive i8. Just last year, Frölich spoke during BMW’s 2017 Tech Workshops, where he discussed the German legacy automaker’s plans for an electrified future, at one point even noting that “electro-mobility is the new normal” for the carmaker.
In a way, Frölich’s recent statements might be coming from firsthand experience. BMW, after all, is currently starting to adopt a Tesla-like approach in the development of its vehicles’ battery cells. During the unveiling of the iNEXT concept vehicle, BMW announced that it had developed its own battery cells, which, in turn, will be utilized by its upcoming electric cars and hybrid vehicles. BMW has partnered with Chinese battery maker CATL to manufacture its cells.
BMW’s adoption of an in-house approach to battery cell design and production was likely pushed by German Chancellor Angela Merkel’s initiatives earlier this year. Back in March 2018, Merkel’s government took particular notice on German automakers such as Daimler, BMW, and Volkswagen and their dependence on Asian companies for the battery needs of their electric cars. Addressing the carmakers last June, Merkel urged the legacy automakers to start catching up. Considering Frölich’s recent statements, though, BMW might be learning that battery technology is not very easy to master.
Tesla, for its part, continues to refine its battery tech. The electric car maker’s batteries have used less cobalt over the years, and Elon Musk has announced on Twitter that the company is aiming to use no cobalt at all in the future. During the 2018 Annual Shareholder Meeting, Musk further mentioned that Tesla is closing in on a cost of $100 per kWh at the pack level.
“We think at the cell level probably we can do better than $100/kWh maybe later this year depending upon stable commodity prices. With further improvements to the cell chemistry, the production process, and more vertical integration on the cell side, for example, integrating the production of cathode and anode materials at the Gigafactory, and improved design of the module and pack, we think long-term we can get below $100/kWh at the pack level,” he said.
Elon Musk
First Tesla Cybercab rolls off Giga Texas production line
Tesla’s official account on X shared an image showing employees gathered around the first Cybercab built at Gigafactory Texas.
Tesla has produced the first Tesla Cybercab at Texas Gigafactory, marking a key milestone ahead of the planned autonomous two-seater’s production in April. The two-seat Robotaxi, which was unveiled in 2024, is designed without pedals or a steering wheel and represents Tesla’s most aggressive step yet toward fully autonomous mobility.
Tesla’s official account on X shared an image showing employees gathered around the first Cybercab built at Gigafactory Texas. Elon Musk echoed the milestone, writing, “Congratulations to the Tesla team on making the first production Cybercab!”
Previous comments from Musk on X reiterated the idea that production of the Cybercab “starts in April.” The vehicle will launch without traditional driver controls, and it will rely entirely on Tesla’s vision-based Full Self-Driving (FSD) system.
The Cybercab is positioned to compete with autonomous services such as Waymo. While Tesla has deployed Model Y vehicles in limited Robotaxi operations in Austin and the Bay Area, a serious ramp of the service to other cities across the United States is yet to be implemented. The production of the Cybercab could then be seen as a push towards the company’s autonomy plans.
Musk has linked the Cybercab to Tesla’s proposed “Unboxed” manufacturing process, which would assemble large vehicle modules separately before integrating them, rather than following a traditional production line. The approach is intended to cut costs, reduce factory footprint, and speed up output.
That being said, Elon Musk has set expectations for the Cybercab’s production ramp. As per Musk, it would likely take some time before meaningful volumes of the Cybercab are produced because it is such a new and different vehicle. But when the vehicle hits its pace, volumes will be notable.
“Initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast,” Musk noted.
Elon Musk
California city weighs banning Elon Musk companies like Tesla and SpaceX
A resolution draft titled, “Resolution Ending Engagement With Elon Musk-Controlled Companies and To Encourage CalPERS To Divest Stock In These Companies,” alleges that Musk “has engaged in business practices that are alleged to include violations of labor laws, environmental regulations, workplace safety standards, and regulatory noncompliance.”
A California City Council is planning to weigh whether it would adopt a resolution that would place a ban on its engagement with Elon Musk companies, like Tesla and SpaceX.
The City of Davis, California, will have its City Council weigh a new proposal that would adopt a resolution “to divest from companies owned and/or controlled by Elon Musk.”
This would include a divestment proposal to encourage CalPERS, the California Public Employees Retirement System, to divest from stock in any Musk company.
A resolution draft titled, “Resolution Ending Engagement With Elon Musk-Controlled Companies and To Encourage CalPERS To Divest Stock In These Companies,” alleges that Musk “has engaged in business practices that are alleged to include violations of labor laws, environmental regulations, workplace safety standards, and regulatory noncompliance.”
It claims that Musk “has used his influence and corporate platforms to promote political ideologies and activities that threaten democratic norms and institutions, including campaign finance activities that raise ethical and legal concerns.”
If adopted, Davis would bar the city from entering into any new contracts or purchasing agreements with any company owned or controlled by Elon Musk. It also says it will not consider utilizing Tesla Robotaxis.
Hotel owner tears down Tesla chargers in frustration over Musk’s politics
A staff report on the proposal claims there is “no immediate budgetary impact.” However, a move like this would only impact its residents, especially with Tesla, as the Supercharger Network is open to all electric vehicle manufacturers. It is also extremely reliable and widespread.
Regarding the divestment request to CalPERS, it would not be surprising to see the firm make the move. Although it voted against Musk’s compensation package last year, the firm has no issue continuing to make money off of Tesla’s performance on Wall Street.
The decision to avoid Musk companies will be considered this evening at the City Council meeting.
The report comes from Davis Vanguard.
It is no secret that Musk’s political involvement, especially during the most recent Presidential Election, ruffled some feathers. Other cities considered similar options, like the City of Baltimore, which “decided to go in another direction” after awarding Tesla a $5 million contract for a fleet of EVs for city employees.
News
Tesla launches new Model 3 financing deal with awesome savings
Tesla is now offering a 0.99% APR financing option for all new Model 3 orders in the United States, and it applies to all loan terms of up to 72 months.
Tesla has launched a new Model 3 financing deal in the United States that brings awesome savings. The deal looks to move more of the company’s mass-market sedan as it is the second-most popular vehicle Tesla offers, behind its sibling, the Model Y.
Tesla is now offering a 0.99% APR financing option for all new Model 3 orders in the United States, and it applies to all loan terms of up to 72 months.
It includes three Model 3 configurations, including the Model 3 Performance. The rate applies to:
- Model 3 Premium Rear-Wheel-Drive
- Model 3 Premium All-Wheel-Drive
- Model 3 Performance
The previous APR offer was 2.99%.
NEWS: Tesla has introduced 0.99% APR financing for all new Model 3 orders in the U.S. (applies to loan terms of up to 72 months).
This includes:
• Model 3 RWD
• Model 3 Premium RWD
• Model 3 Premium AWD
• Model 3 PerformanceTesla was previously offering 2.99% APR. pic.twitter.com/A1ZS25C9gM
— Sawyer Merritt (@SawyerMerritt) February 15, 2026
Tesla routinely utilizes low-interest offers to help move vehicles, especially as the rates can help get people to payments that are more comfortable with their monthly budgets. Along with other savings, like those on maintenance and gas, this is another way Tesla pushes savings to customers.
The company had offered a similar program in China on the Model 3 and Model Y vehicles, but it had ended on January 31.
The Model 3 was the second-best-selling electric vehicle in the United States in 2025, trailing only the Model Y. According to automotive data provided by Cox, Tesla sold 192,440 units last year of the all-electric sedan. The Model Y sold 357,528 units.
First Tesla Cybercab rolls off Giga Texas production line
California city weighs banning Elon Musk companies like Tesla and SpaceX
