Tesla To Build 1,0000 GWh Of Battery Cells Domestically, Over Double Entire World's 2022 Output

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Tesla To Build 1,0000 GWh Of Battery Cells Domestically, Over Double Entire World's 2022 Output
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Tesla is dramatically accelerating its plan to bring its battery supply change to the US to meet the needs of the IRA tax bill.

They were confident that they will be able to captureThe most well known and discussed $7,500 per car available for consumers — which, if Tesla sold 5 million cars a year domestically, would be $37.5 billion a year to consumers.$10 a kWh for pack manufacturing — times a half billion kWh is another $5 billion a year.Elon Musk also mentioned that they think they are still on the path outlined at Battery Day to achieve a battery cell cost of $70 per kWh without any of the above subsidies.

and has been falling because of innovation but rising due to material cost increases, so maybe flat overall. On the investor conference call, they were optimistic that overall costs will fall next year. If Tesla is going to grow sales dramatically in 2023 , they need to get the cost to the consumer down.

Now, I think the effect of the $7,500 credit will make it unnecessary to reduce the price of the Model 3 this year. I do think they will want to once again release the standard range Model Y in the US, as soon as they ramp Austin to the point that they have reduced the waiting time to just a few weeks.

Elon said two-thirds of the batteries will use iron rather than nickel in the cathode, with magnesium as a wildcard. This also suggests Tesla will reintroduce the standard range Model Y, since, to date, only standard range vehicles use iron-based batteries .existing sales by announcing the coming availability of a better car when nobody can buy it anyway and it could cause demand for Tesla’s existing cars to weaken.

Disclosure: I am a shareholder in Tesla [TSLA], BYD [BYDDY], Nio [NIO], XPeng [XPEV], and Hertz [HTZ]. But I offer no investment advice of any sort here.

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