Tesla has successfully increased its 4680 battery production ramp to over 1,000 units per week, marking an 18%-20% increase compared to the previous quarter, translating to an additional 7GWh per year. The company aims to continue staying ahead of the Cybertruck ramp by ramping up the third of four lines in Phase 1 of production while maintaining ample cell inventory to support the upcoming increase in production.
During the Q1 2024 earnings call, Law Moravy, Tesla’s Vice President of Vehicle Engineering, expressed confidence in beating the supplier cost of nickel-based cells by the end of the year. This demonstrates Tesla’s commitment to innovating new battery technologies and reducing costs to remain competitive in the electric vehicle market. The continuous improvement in battery production efficiency will further enhance Tesla’s position as a leader in sustainable transportation.
Colin Rusch from Oppenheimer inquired about Tesla’s progress in the 4680 battery ramp, particularly regarding target yields and the timeline for accelerating incremental capacity expansions. Moravy explained that the current 4680 ramp is closely linked to the Cybertruck production ramp, emphasizing the importance of aligning battery production with vehicle demand to avoid oversupply or underutilization of cells. This strategic approach ensures efficient utilization of resources and supports overall operational efficiency.
In response to a query from Shreyas Patil of Wolfe Research about potential sales of 4680 cells to other automakers, Elon Musk indicated a decline in demand for batteries from other manufacturers, resulting in more competitive prices from suppliers. Tesla’s focus remains on meeting its internal production requirements and ensuring ample supply for its own electric vehicles. This approach allows Tesla to prioritize its own vehicle production and optimize production capabilities to meet growing demand for its sustainable transportation solutions.
The progress in Tesla’s 4680 battery production ramp signifies a significant step towards achieving the company’s goals of increasing production capacity, reducing costs, and maintaining a competitive edge in the electric vehicle market. By ramping up production to over 1,000 units per week and aiming to beat the supplier cost of nickel-based cells, Tesla demonstrates its commitment to innovation and continuous improvement in battery technology. The strategic alignment of battery production with vehicle demand enables Tesla to optimize operational efficiency and resource utilization.
As Tesla continues to scale its production capabilities and expand its electric vehicle lineup, the company remains focused on meeting internal demand and ensuring sufficient battery supply for its own vehicles. By closely monitoring market trends and supplier dynamics, Tesla can adapt its production strategies to remain competitive and continue leading the transition to sustainable transportation. The ongoing progress in the 4680 battery production ramp underscores Tesla’s commitment to advancing battery technology and driving innovation in the electric vehicle industry.
