Is it possible that a price cut on the Tesla Model Y is coming in the future? It looks like it could happen thanks to new battery technology in the works that would allow the automaker to cut costs significantly—if Tesla can figure out the manufacturing process.

According to a report from Automotive News, Tesla is poised to reduce costs by increasing battery cell size and utilizing a new process to "dry-coat" electrodes. This process could allow Tesla to reduce the price of the Model Y 4680 battery by half, which would shave approximately 8 percent off the total retail price, according to the report. Unfortunately, it will be a while before this new technology is ready for prime time. According to 12 experts close to Tesla that AN spoke to, the dry-coat batteries are only about halfway through development.

The dry-coat technology that Tesla is working on came from its acquisition of Maxwell Technologies, a San Diego company that produced supercapacitors, which store energy for things that need quick, strong bursts of electricity, such as camera flashes. The tech Maxwell used to produce its supercapacitors became the basis for what Tesla is doing with its dry-cell 4680 batteries, which it began producing this year at its plants in California and Texas.

Apparently, because the dry-coat technique is so new and "unproven," Tesla is having issues scaling up the process, with production estimated at sometime in 2023, according to AN. While that is not great news for those looking for lower prices on Teslas right now, it could mean great news in the not so distant future. Unless something has changed, Tesla is still pushing towards its goal of producing a R430,000 EV (however realistic that may be), and if it can find a way to effectively mass produce dry-coat batteries it has a better chance than it would otherwise.

We will continue to follow this news as things develop, as a breakthrough in battery tech (and, more importantly, significant downward pressure on prices) for these popular electric SUVs could give a boost to EV sales overall. Considering California's upcoming ban on fossil fuel vehicles and rumors that other states may follow suit, affordable EVs are going to be more important than ever within the next decade.

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