Chapter 662: 1243 Kilometers, a Disruptive Change

In late August in Silicon Valley, the morning fog had yet to completely dissipate, but the sun had already pierced through the thin clouds, scattering pale golden flecks of light onto the streets of Palo Alto.

3500 Luxi Road, Tesla Headquarters.

Musk, dressed in a sharp suit and wearing a pair of polished leather shoes, solemnly handed the keys to a Model S LR to its owner.

A brilliant smile on his face, he said politely, “Thank you for your support of Tesla!”

After speaking, he posed for a photo with the owner and personally opened the car door for them.

This delivery ceremony attracted the attention of several local California media outlets. The Information, Silicon Valley Metro, TechCrunch, and The Verge were all invited to the event to build publicity for the Model S LR.

In the audience, representatives from North American automobile manufacturers like General Motors, Ford, and Fiat watched this scene with grim expressions.

The representatives from overseas automotive giants such as Toyota, Honda, Mercedes-Benz, and Hyundai also had rather complicated expressions.

The Model S LR’s ultra-long range of 1,200 kilometers had completely upended the competitive landscape of the electric vehicle industry, while also sparking panic among traditional internal combustion engine vehicle manufacturers.

This range was ingeniously designed: it not only crushed its electric vehicle competitors but also surpassed 99.9% of gasoline-powered cars.

Among all those present, only the representative from BMW appeared calm and composed.

Because as early as the beginning of the month, BMW had signed a massive 500 million US Dollar procurement deal with Deep Blue Technology. Once Shencheng City’s No. 2 Factory began production, the BMW i3 would be equipped with the world’s most advanced 4890 lithium-sulfur batteries.

At that time, they would join Tesla in competing for market share in the new energy vehicle industry.

He discreetly glanced at his peers around him, thinking to himself, ‘A step behind means always behind.’

Although BMW hadn’t managed to become a first-batch purchaser like Tesla, compared to laggards like General Motors, Ford, and Fiat, they had already seized the initiative.

“CLICK—!” The short shutter sound mingled with the flash of cameras.

Musk, in front of the cameras, was in his element!

Even though the battery cost accounted for 40% of the price for every Model S LR sold, Tesla had used this to achieve revenue growth, and its stock price was soaring.

To expand the Model S LR’s influence, Musk had also partnered with Mimo’s official team, dropping 10 million US Dollars to buy traffic on the platform.

At this moment, millions of car enthusiasts from around the world had gathered in the livestream.

“The Tesla Model S LR has a great exterior design, full of futuristic tech. That 17-inch center console screen looks so cool. It would be great if the price could drop to 59,000 US Dollars.”

“59,000 US Dollars? That wouldn’t even cover the cost of the battery!”

“What’s the battery degradation rate? What if the battery dies after two years? Wouldn’t I have to spend another 74,000 US Dollars to replace the battery pack?”

“The official website promises an 8-year or 300,000-kilometer warranty. As long as the battery capacity degrades by more than 30%, you can get a free replacement.”

“Based on a cycle life of 1,200 charges, even if that’s inflated by thirty percent, given the performance of the 4890 battery pack, hitting 1 million kilometers wouldn’t be difficult. It might even be more durable than a gasoline car.”

The battery pack for the Model S LR cost 64,000 US Dollars. Factoring in labor, Musk’s price was 74,000 US Dollars, which was almost half the car’s total retail price.

For the vast majority of users, the biggest obstacle to placing an order was the price.

With a price of 159,000 US Dollars, they could take their pick from Mercedes-Benz, BMW, Porsche, or Bentley.

However, Musk’s first batch of target customers wasn’t aimed at ordinary consumers. To put it bluntly, he was fleecing the rich.

After all, Deep Blue Technology’s battery costs were too high!

How could the poor possibly afford it?

「Meanwhile.」

Many domestic entrepreneurs were also glued to their screens, watching this grand livestreamed show.

A single Model S LR sold for 159,000 US Dollars. With total sales of 11,000 units, the transaction volume reached a staggering 1.71 billion US Dollars.

Who wouldn’t be tempted?

He Xiaopeng, the founder of UC Browser, felt a spark of inspiration. His interest was piqued. Compared to the internet, the potential of new energy vehicles seemed just as significant, especially since it aligned with the needs of the era.

He knew full well that the reason the higher-ups were vigorously promoting electric cars was simply because of high gas prices and low electricity costs. Furthermore, developing purely electric vehicles was more in line with the country’s actual energy structure.

Li Xiang, the chairman of Auto Home, leaned back in his executive chair, staring at the livestream projected on the screen, and couldn’t help but fall into deep thought.

At the Yanjing Xiaomi Headquarters, Lei Yijun was pensive. But after long consideration, he finally let out a soft sigh and thought to himself, ‘Xiaomi hasn’t even fully mastered the phone business. Building cars? How could it be that easy!’

On the other hand, automobile manufacturers like BYD, Jianghuai, SAIC, and BAIC watched with an unbearable itch to get in on the action, eager to try.

The price for the high-end version with a 1,200-kilometer range was indeed steep, but for models with 300 or 500-kilometer ranges, the cost could be reduced by more than half.

Adding in various subsidies, it wasn’t impossible to build a purely electric vehicle with a final price controlled between 150,000 and 200,000 yuan.

The debut of the Deep Blue 4890 power battery had advanced the development of the new energy vehicle industry by two to three years.

「On the other side.」

After dealing with the rival companies and the news media, Musk officially announced a livestreamed range test for the Model S LR.

He would lead a Tesla executive and drive a Model S LR from Silicon Valley to their destination: Seattle.

The entire journey would be 1,240 kilometers, a challenge to travel across states!

Reporters from the four local media outlets would follow and report on the entire journey to ensure the accuracy of the test and prevent the Tesla company from cheating.

Musk’s idea was simple: he wanted to shatter consumers’ “range anxiety” about electric cars in one fell swoop.

At three in the afternoon, Musk departed right on time.

Driving north along US Highway 101, it wasn’t long before they saw endless vineyards stretching out before them.