The battery is $3500 for 10kWh.
Model S with a 270kWh battery is advertised with a range of 240mi.
Model 3 aims for a minimum range of 200mi, or 5/6, a.k.a. 225kWh battery.
225 is 22.5 * 10.
22.5 * $3500 = $78,750.
Model 3 is supposed to be $35,000.
I believe in Elon Musk completely and I want nothing more than to see him succeed and I have been blown away by what Tesla Motors and SpaceX accomplish at every turn.
But even so, I will be amazed again if the Gigafactory can truly make the price point feasible. I really believe they'll do it, I just don't see how.
Can the factory's massive gains in efficiency really change things by such a huge factor in 2 years? (Model 3 targets 2017, doubtful.)