Elon Musk has said the new technology that’ll be revealed at Tesla’s ‘Battery Day’ event, which is going live in a few hours, will not become widely available for two more years.
The Tesla CEO posted on Twitter that this “affects long-term production, especially Semi, Cybertruck & Roadster, but what we announce will not reach serious high-volume production until 2022.”
Investors and analysts expect Tesla to announce several significant advancements in battery cell technology, including a possible plan to produce its cells. Musk hinted in late August of a new battery cell that’s 50 percent more energy-dense than the ones used currently in the Model 3.
Musk, however, also said that Tesla intends “to increase, not reduce battery cell purchases from Panasonic, LG & CATL (possibly other partners too). However, even with our cell supplier going at maximum speed, we still foresee significant shortages in 2022 & beyond unless we take action ourselves,” dampening expectations and causing share prices to dive.
“The extreme difficulty of scaling the production of new technology is not well understood. It’s 1000% – 10,000% harder than making a few prototypes. The machine that Creates the machine is vastly harder than the machine itself,” he concluded.
Tesla is also expected to announce a breakthrough in the cost of batteries, which will help the carmaker offer its electric models at more affordable prices, which has also been a public concern for Musk.
Citing sources familiar with the matter, Reuters reports that Tesla is currently working on new, more giant battery cells at its Fremont facility. Also, the company will set up a battery cell manufacturing facility at its new factory in Berlin, Germany.
Tesla Stock Fell Today
The news was disappointing to investors who were hoping Tesla would reach the mass production of its new batteries by next year. Analysts see Tesla’s battery technology advances as a critical point of differentiation with its electric vehicle rivals.
However, Musk said Tesla would need to rely more on its current suppliers until it can ramp up its battery cell production. “We intend to increase, not reduce battery cell purchase from Panasonic, LG & CATL (possibly other partners too),” Musk said on Twitter.
Musk did note that Tesla would need to “take action” to address the “significant shortages” in battery cell production beginning in 2022. However, he also warned about the “extreme difficulty” of scaling up the company’s new battery technology.