There’s been a lot of interest in Tesla’s 4680 batteries since before they were even announced, but their development and ramp-up have been a bit below par in terms of most people’s expectations. I’ve seen various claims about these, and those claims have diverged quite a bit as time has gone on, so it was nice to get a little bit of an update on these batteries from Tesla yesterday on the company’s quarterly shareholder conference call .
On the call, when asked about that further, Tesla execs clarified that they weren’t producing more 4680 batteries because it didn’t really make sense to do so until Cybertruck production ramped up and more were needed. So, that tells us that battery production ability is not an issue, but also that they aren’t seen as needed more broadly in higher quantity.
They also highlighted that they used this 4680 battery development to drive down some supplier costs, and the company is actually able to insert those savings into its supply chain even while getting the end product from external battery makers. In other words, Tesla can buy inputs to battery cells on the cheap, pass those inputs on to battery cell producers , and then benefit from lower battery costs than the competition.
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