The priority now is to reduce costs ahead of the Cybertruck production ramp-up.
, the company’s senior vice president of engineering, Drew Baglino, offered some much-needed and detailed updates on the 4680 cell:
“For the Cell Factory, for the Texas 4680 factory, we are part way through building and commissioning and installing and operating, will be 70% lower capex per gigawatt hour than typical cell factories when fully ramped in line with what we described on Battery Day. And we’re continuing to further pursue densification and investment reduction opportunities in future factory buildouts like in Nevada.
He then added that the priority is now to reduce the cost of production as much as possible in preparation for the Cybertruck production ramp-up, which is expected to happen at the beginning of 2024: “On Texas production, we increased 50% quarter-over-quarter, through yields increased 12% and peak rate increased by 20% and through yields improved by 20%. Altogether, the team accomplished a 25% reduction in COGS over the quarter and we are on track to achieve steady-state cost targets over the next 12 months. And going forward for the rest of the year, the priority one is to yield in cost for the 4680 program as we steadily ramp production ahead of Cybertruck next year.
With all this being said, it looks like Tesla is on track to make its 4680 battery cells at much higher rates than before. But we’d like to know what you think about all of this, so please head over to the comments section below to give us your thoughts.
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