BIG Tesla 4680 Battery Update | This Changes EVERYTHING!

Summary

In the Q2 2024 investor call, Tesla's Lars Moravy revealed significant progress in 4680 battery production, with a 51% increase in cell output and reduced costs compared to Q1. The company now produces over 1,400 Cybertrucks' worth of 4680 cells weekly, aiming to undercut supplier costs by year-end. A breakthrough in the dry cathode manufacturing process is a key milestone, promising cost efficiency and scalability. Tesla is on track to launch production vehicles with these batteries in Q4, marking a pivotal year for 4680 battery advancements.

Takeaways

• 🚀 Tesla's 4680 battery production increased by 51% in Q2 2024 compared to Q1, indicating significant progress in ramping up production.
• 🔋 The cost of goods sold (COGS) for the 4680 batteries has been reduced, which is crucial for Tesla's financial goals and competitiveness.
• 🔝 Tesla is currently producing enough 4680 cells to equip over 1,400 Cyber Trucks per week, a substantial increase from previous production levels.
• 📈 The production rate is now around 100 million battery cells per year, with expectations for rapid growth in the coming months.
• 🎯 Tesla aims to achieve cost parity with nickel-based suppliers by the end of the year, a goal that is considered critical for the 4680 battery program's continuation.
• 🛠️ Tesla has confirmed the successful development and use of a dry cathode process for 4680 batteries, marking a significant technical milestone.
• 🌟 The dry cathode process is expected to greatly reduce production costs and is a key factor in Tesla's strategy to undercut supplier costs.
• 🔄 Tesla has been facing challenges with the 4680 battery production for around 5 years, but recent updates suggest they are overcoming these obstacles.
• 🚚 The first validation Cyber Truck with dry cathode process batteries has been built, showcasing Tesla's progress towards mass production.
• ⏱️ Tesla is on track to launch production with dry cathode 4680 batteries in Q4, potentially leading to significantly lower cell costs compared to alternatives.
• 🔍 With key production challenges addressed, Tesla's engineers can now focus on improving the 4680 battery cell's performance and energy density.

Q & A

What is the significance of the 4680 battery updates mentioned in the script?

The 4680 battery updates are significant because they indicate that Tesla has made substantial progress in ramping up production and reducing the cost of goods sold (COGS) for these batteries, which are crucial for the company's electric vehicle production and energy storage products.

How long has Tesla been working on the 4680 batteries?

Tesla has been working on the 4680 batteries for approximately 5 years, experiencing struggles but now showing promising progress.

What was the production increase of 4680 cells from Q1 to Q2 2024 according to Lars Moravy?

Lars Moravy reported a 51% increase in the production of 4680 cells from Q1 to Q2 2024.

What does 'COGS' stand for in the context of the script?

In the script, 'COGS' stands for 'Cost of Goods Sold,' which Tesla has been working on reducing significantly in the production of their 4680 batteries.

How many 4680 battery cells did Tesla produce weekly as of the Q2 2024 update?

As of the Q2 2024 update, Tesla was producing more than 1,400 Cybertrucks' worth of 4680 cells per week.

What does the term 'accumulative totals' refer to in the context of Tesla's battery production?

Accumulative totals refer to the total number of battery cells produced over a period, which gives an overall picture but doesn't reflect the current rate of production ramp-up.

What was the accumulative number of 4680 battery cells Tesla had produced as of June 5th?

As of June 5th, Tesla had produced their 50 millionth 4680 battery cell.

How many days did it take Tesla to produce their first 50 million 4680 battery cells?

It took Tesla over 600 days to produce their first 50 million 4680 battery cells.

What is the annual production rate of 4680 battery cells currently according to the script?

The current annual production rate of 4680 battery cells is around 9 gigawatt-hours (GWh) per year.

What is the significance of Tesla solving the dry manufacturing process for cathodes?

Solving the dry manufacturing process for cathodes is significant because it allows for a more efficient and cost-effective production of battery cells, which is a key factor in meeting Tesla's cost targets and improving the overall energy density and performance of their batteries.

What is the target cost parity that Tesla is aiming to achieve for their 4680 batteries by the end of the year?

Tesla is aiming to achieve a cost parity where their 4680 batteries are less expensive than those supplied by other companies, specifically for nickel-based cells, by the end of the year.

What does the validation of the dry cathode process on mass production equipment mean for Tesla?

The validation of the dry cathode process on mass production equipment signifies a major technical milestone, indicating that Tesla is capable of producing these batteries at scale with the new, more efficient process.

What is the expected impact of the dry cathode process on the cost of 4680 batteries?

The dry cathode process is expected to significantly reduce the cost of 4680 batteries, enabling Tesla to produce them at a cost lower than their suppliers, which is a key goal of the 4680 program.

When does Tesla plan to launch production with dry cathode electrodes?

Tesla is on track to launch production with dry cathode electrodes in Q4 of the year, which will help in achieving the cost reduction goal.

What does the script suggest about the future of 4680 battery production at Tesla?

The script suggests that 2025 could be a breakthrough year for 4680 battery production at Tesla, with the company not only scaling up production but also focusing on improving the charging performance and energy density of the battery cells.