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Tesla Gigafactory 1 has 35% battery cost reduction to about $124/kWh and ....
Tesla was aiming for at least a 30% reduction from its battery cost for Gigafactory and it now claims a "35% cost reduction" in a new promotional video.
Starting from the "less than $190/kWh" cost and applying a 35% reduction leads to "less than $124/kWh". If we assume a 55 kWh battery pack, the battery in the base Model 3 would cost "less than" $6,875. While it would still likely be the most costly component in the car, it's starting to become reasonable in a $35,000 vehicle.