Point of diminishing returns is further out than you would expect for 2 reasons
1) pukert makes the effective capacity higher with more cells due to lower discharge rate.
2) battery pack remains useful longer as capacity decreases.
Sure weight adds up, and eventually takes over, but largely more battery gives more power range and efficancy.
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2016 Tesla Model X
2022 Sprinter
Gone 2012 Tesla Model S P85
Gone 2013 Nissan LEAF SV
2012 Nissan LEAF SV
6 speed ALH TDI Swapped in to a 2003 Jetta Wagon
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