Hi everybody, Rob Maurer here and today we have the good fortune to be joined by Jordan Geesegee of the limiting factor channel on YouTube.

Before we even get started, just go ahead and flip over to the limiting factor and hit subscribe because Jordan does amazing content around everything battery related.

Before we even get into it, thanks Jordan for all that amazing content you've put out on batteries. I know it's been super helpful to me.

Been super helpful to a lot of people in the Tesla community, so thank you.

Thanks Rob and thanks for having me. It's good to finally have a chat with you.

Yeah, for sure. So the reason I wanted to bring you on today is just to talk a little bit more about what we heard earlier this week at Volkswagen's Power Day.

So I think both of us have done a little bit of recapping on our individual channels on this, but thought it would be a great opportunity to, you know, just bring you in, kind of discuss a little bit of our thoughts about this.

And kind of the reaction because, you know, in the markets, at least we've seen Volkswagen stock up like 20% since this Power Day.

So I guess first thing, just what are your initial reactions and then we can kind of go into some of the details.

Well, I liked what you said yesterday. It's kind of a battery day light. It follows a lot of the same beats that battery day followed, but there's a few differences.

And even though it followed some of the same beats, it wasn't an apples to apples comparison. So I've seen some comparisons out there claiming or comparing Tesla's 56% cost reduction.

To Tesla's 50% cost reduction. And they're two very different things yet to VW's. So they can't be directly compared.

So what are the main differences there because, you know, I also noticed that. And I think the main one that stuck out to me was kind of they're using lithium iron phosphate as one of the ways to get down to that 50% is that kind of what you're alluding to here.

That's exactly what I'm talking about. So with Tesla, their 56% cost reduction is as far as I can tell, they took a relatively similar chemistry.

And through a number of improvements, they've they look like they're going to be able to decrease the cost by 56%.

Now, if Tesla on top of that also did a massive change to the chemistry like switching to LFP, they would get some additional cost reductions there, maybe drive it down by 65 to 70%.

But what's included in VW's 50% number as a 20% cost reduction from LFP.

So really the more apt comparison would be say Tesla has around a 50% cost decrease and VW has around a 30% cost decrease.

Okay. And yeah, I would say it's like it's a little bit unclear based on Tesla's presentation exactly, you know, where that starting point is, but I think most of us assume that they're starting with let's say a 2170 cell in a long range model three.

And getting to 56% cost reduction from that is that kind of what your stance is as well.

Yeah, well, there's a number of reasons why it's not an apples to apples comparison. And that's another one because you have to look at the starting point of their cost.

I would say VW is around 130 to 150 dollars per kilowatt hour at the pack level. And Tesla, I don't know exactly what they're at, but I'm guessing it's around 110 to 120.

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