This continuing argument about what is necessary or not does not sink into my little brain. I don't get it. I think of gas cars.
They are cheap.
Long ranges are "unnecessary".
"Super(gas)chargers" are everywhere.
WHY, then do gas cars come with a 300 mile range?
People may not need 300 mile range, but it's the minimum we think we need. If YOU like driving with half that, and like having to stop at superchargers, or gas stations, twice as often, you are the rare one. That's precisely why 40 kWh batteries are not being made. The demand is not there.
If you want a cheap electric with no range, there is the Leaf, the Spark, the iMiev, or you can go with Volt or BMW i3. Tesla builds cars that are NO COMPROMISE, and, yes they are more expensive.
But Tesla's competition is not Nissan or Chevy or Mitsubishi. They compete with BMW, Porsche, Mercedes. And I'm sure there are disadvantaged people who think it is their right to have those car makers make a high quality car for them at dirt cheap prices. But it doesn't happen.
Gas cars come with 300 miles because the cost of adding a larger tank is negligible. The cost of adding larger batteries is not. Also, they come with larger tanks because people don't go to the gas station every day, because going to gas stations sucks. EVs don't go to gas stations, so there's another reason not to have a huge tank. So I will ask you a similar question: WHY do gas cars only come with a 300 mile range? They could come with a 1,000 mile range, and they wouldn't cost much more at all. Why haven't gas tank capacities been increasing steadily over time, if gigantic "range" numbers are so important?
Like you said, people do not need 300 miles. They think they need 300 miles, but they don't. They think this because they've been told by traditional auto companies that range is important, and by EV advocates who don't understand that they're arguing against their cause, and they will continue to think this if they are told by EV companies that ranges will continually increase (by, for example, the companies continuing to offer larger-range products and cut out smaller-range products). Which is why a 40kWh battery would be a
forward step, not a backward one, because as people make the forward step of realizing they don't need 300 miles, and as companies show them that range won't increase forever and that's just fine because range is already well beyond what all but the biggest outliers need, they will realize they can purchase a smaller battery and be just fine.
The only way in which I'm the rare one is that I seem to be the only one who has read any statistics on people's driving patterns. People do not drive 300 miles in a day, and they do not drive 160 miles in a day. The proportion who do is insanely small. We're talking .1% or less. 40kWh batteries are not being made because the company is supply-constrained, and is focusing on higher-margin vehicles. I guarantee you that if cars were sitting on the lot unsold, Tesla would not have discontinued the 40kWh battery.
Lots of people want a cheap electric with no range, which is why Nissan has sold over 120k Leafs. And they have not been as focused on it as Tesla has, yet their sales numbers are much higher. Why is that? Because a cheaper car sells better. And if a 40kWh car is cheaper than a 60kWh car, it will sell better. Tesla doesn't need to do this because they don't have a demand problem, which is why they can focus on high-margin cars and customers which is the right thing to do short-term business-wise right now, but if they ever do have a demand problem, they will need to. BMW and Mercedes make lower-cost versions of cars, they make cars starting in the 30k range, and they sell a lot more of those than they do their more expensive cars. Manufacturers know that cheaper cars sell better, so they will always want to make their cars cheaper. This is why car kWh capacities will not increase forever. It will always cost more to have a larger battery than a smaller one, no matter what technological improvements we see. And this will be a non-negligible amount for at least the next 30-40 years if battery improvement trends continue at the fairly rapid pace they have now.