Photo: Tesla | Edited
Last December, Tesla delivered the first Semi trucks to PepsiCo three years later than planned. Tesla Semi is still produced in limited numbers, and Musk explained recently that he expects this to continue until the end of next year. The reason? There aren't enough battery cells to build the Semi in significant numbers.
In April, Tesla announced boosting its energy storage battery production with a new production facility in Shanghai. The ability to produce more Megapack storage batteries was seen as an indication that Tesla now has more battery cells than it needs for EV production. Plummeting lithium prices and improved battery cell yields were likely to cause an abundance of cells. Switching energy-storage batteries to lithium-iron-phosphate (LFP) cells should also free more ternary-cell capacity for vehicle production.
The 4680-cell production was believed to have increased as Tesla started selling the Model Y with these cells. Still, all these assumptions were proven wrong by Elon Musk in a speech at an energy conference in Austin, Texas. Tesla CEO said he doesn't expect Semi production to reach larger volumes until late 2024, although he didn't elaborate on what he considers "higher-volume production." Musk cited battery cell supply constraints for the delay in Semi production ramp.
Tesla Semi is a niche product, even for Tesla, but Musk sees it as crucial for the transition to sustainable transportation. Musk said that heavy trucks account for the majority of vehicle emissions, and switching the segment to electric vehicles would bring the most benefits for the environment. Tesla produced a limited batch of the Semi Class-8 electric trucks, all in a pilot project at PepsiCo.
The first Tesla Semi electric trucks were produced in a small production facility near Giga Nevada. Still, Tesla plans to build a dedicated production facility with a production capacity of 50,000 Semi trucks per year. This was initially slated for Texas, but Tesla changed course and announced Nevada would continue to be Semi's home. Together with the Semi production line, Tesla also plans a 4680-cell production facility with enough capacity to power 1.5 million EVs annually.
Although Tesla Semi was rumored to have 4680 cells, Elon Musk confirmed that the electric semitrailer is currently built with 2170 cells. The reason could be the low yields of 4680-cell production, especially as Tesla's partners, including Panasonic, are not progressing with the new cells. The 2170-cell output is also limited, considering that Tesla invested a lot in the 4680 cells and almost nothing in the 2170-cell production.
The battery-cell shortage will likely affect not only Semi production but also the Cybertruck. Tesla's electric pickup truck was delayed, presumably because the 4680-cell production yields were insufficient for mass production. In light of recent comments by Musk, I expect the Cybertruck to only achieve minimal production numbers in 2023 and a gradual ramp in 2024, depending on the battery supply. Tesla's struggles show what other carmakers should expect, especially as none is as invested in Li-Ion battery manufacturing, from mine to pack, as Tesla is.
The 4680-cell production was believed to have increased as Tesla started selling the Model Y with these cells. Still, all these assumptions were proven wrong by Elon Musk in a speech at an energy conference in Austin, Texas. Tesla CEO said he doesn't expect Semi production to reach larger volumes until late 2024, although he didn't elaborate on what he considers "higher-volume production." Musk cited battery cell supply constraints for the delay in Semi production ramp.
Tesla Semi is a niche product, even for Tesla, but Musk sees it as crucial for the transition to sustainable transportation. Musk said that heavy trucks account for the majority of vehicle emissions, and switching the segment to electric vehicles would bring the most benefits for the environment. Tesla produced a limited batch of the Semi Class-8 electric trucks, all in a pilot project at PepsiCo.
The first Tesla Semi electric trucks were produced in a small production facility near Giga Nevada. Still, Tesla plans to build a dedicated production facility with a production capacity of 50,000 Semi trucks per year. This was initially slated for Texas, but Tesla changed course and announced Nevada would continue to be Semi's home. Together with the Semi production line, Tesla also plans a 4680-cell production facility with enough capacity to power 1.5 million EVs annually.
Although Tesla Semi was rumored to have 4680 cells, Elon Musk confirmed that the electric semitrailer is currently built with 2170 cells. The reason could be the low yields of 4680-cell production, especially as Tesla's partners, including Panasonic, are not progressing with the new cells. The 2170-cell output is also limited, considering that Tesla invested a lot in the 4680 cells and almost nothing in the 2170-cell production.
The battery-cell shortage will likely affect not only Semi production but also the Cybertruck. Tesla's electric pickup truck was delayed, presumably because the 4680-cell production yields were insufficient for mass production. In light of recent comments by Musk, I expect the Cybertruck to only achieve minimal production numbers in 2023 and a gradual ramp in 2024, depending on the battery supply. Tesla's struggles show what other carmakers should expect, especially as none is as invested in Li-Ion battery manufacturing, from mine to pack, as Tesla is.
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