This Could Be the Reason Why Tesla Removed the 4680-Cell Model Y From Its Website

Tesla removed the base-version Model Y AWD from its US website a week ago, prompting speculations about the move. The electric crossover built at Giga Austin is unique in Tesla's lineup because it uses Tesla's most advanced manufacturing technique. Unlike the Model Y built at the Fremont factory, the Austin-made Model Y features front and rear megacastings, as well as a structural battery pack. Inside this pack, Tesla uses its own 4680 battery cells.

In a presentation during 2020 Battery Day, Tesla touted the 4680 cells as the next frontier in Li-ion battery development, allowing a significant performance increase and much lower production costs. The new cells would feature a silicone anode and a dry-battery-electrode (DBE) manufacturing process. The technology, which promised to significantly lower manufacturing costs, was acquired along with Maxwell but never lived up to Tesla's expectations.

Three years later, Tesla is still not able to produce 4680 cells in enough quantities. The ones it can make are scarce, which explains why Tesla uses them for the cheapest Model Y with a smaller battery capacity. The 4680 cells also perform poorly compared to their 2170 counterparts.

Tesla makes them in two production facilities, one at Giga Texas, and another close to the Fremont factory. The latter is Tesla's pilot line, where the 4680-cell development started, and only makes limited cell quantities. In the meantime, Giga Texas has already begun producing the second-generation 4680 cells with improved characteristics. These are exclusive to the Cybertruck for now, as Tesla is preparing to start deliveries of its first pickup truck.

People speculated that Tesla discontinued the 4680-cell Model Y because it needed the cells for the Cybertruck production. This is only partially true. The Model Y uses the first-generation 4680 cells, which are not a good fit for the Cybertruck. According to a recent video, the base-version Model Y was scrapped because Tesla would shut down the Kato Road battery facility in November. The Li-ion battery production is set to resume after three months of upgrade works.

The EV maker will use the production halt to upgrade the production line. This will allow it to manufacture the second-generation 4680 cells, offering a 10% improvement in energy density. Tesla likely needs this to boost 4680 cell production in time for the Cybertruck deliveries. This is why the discontinuation of the Model Y AWD is still connected to the Cybertruck use of 4680 cells, although not directly.

It's unclear whether the 4680 cells will return to the Model Y soon. Considering their lackluster performance, they were probably used for testing purposes. Those who bought the 4680-cell Model Y can be regarded as paying beta-testers of the new technology. A more affordable Model Y will probably replace the base AWD variant in the future. People would want it to have LFP battery cells, similar to those used by the made-in-Germany Model Y RWD.