Former Tesla 4680 battery cell production engineer James Herbermann has been named Vice President of Manufacturing at the American Battery Factory (ABF).
“James brings to American Battery Factory incredible perspective and front row experiences in evolving battery cell technology and is the perfect complement to our team as we begin our journey to develop a domestic battery manufacturing ecosystem that will make energy independence and renewable energy a reality for the United States,” ABF CEO and President Paul Charles said. “As we lay the foundation for our factory network, I am confident James’ cross-functional leadership will not only enhance the efficiency of ABF’s modular approach to manufacturing, but it will also propel our unwavering quest to develop the longest-lasting LFP prismatic battery cells on the market.”
James Herbermann, formerly with Tesla, joins American Battery Factory as its new Vice President of Manufacturing.
ABF is working to develop the United States’ first network of Lithium-Iron Phosphate, or LFP, battery cell gigafactories. The LFP cell is a major part of many automakers’ plans for future electric vehicles as more cell chemistries are being utilized to combat excessive demand. Tesla, for example, started transitioning its Standard Range trim levels to LFP batteries last year. The automaker confirmed that it would utilize the cell chemistry in lower range vehicle as they are less expensive and have longer lifespans. They do have their disadvantages, especially in terms of energy density, which means less power and range with EVs that utilize these packs. They are also more likely to be affected by adverse weather conditions, especially in colder climates.
CEO Elon Musk has said in the past that LFP packs want to be charged to 100 percent, as opposed to nickel-based packs that prefer a 90 percent state of charge.
Tesla is just one of the companies working to use LFP cells. Rivian, Ford, and Volkswagen are also utilizing the cell chemistry for some of their vehicles. Therefore, the need to produce more cells to provide automakers and customers with suitable options is definitely a work in progress.
Tesla (TSLA) Q1 2022 earnings results: Another beat with 19% operating profit and margin
ABF is working to eliminate LFP shortages with a series of production plants across the U.S., and the company is looking for Herbermann to lead and support all aspects of its manufacturing and production operations. Prior to ABF, Herbermann worked at Tesla to lead the development and scaling of its new battery electrode processes in Austin from the pilot program to a full-scale production process. He was a direct piece of Tesla’s commercialization of the 4680 cells, which has been installed in early builds of the Model Y from the new Austin factory. Additionally, Herbermann has developed “novel Sodium Titanium Phosphate; F1 racing Li-Ion cells; Aquion Hybrid Ion (AHI®); Duracell Ultra®; Comfort Plus® modular carpet tiles; and ZIP Wall® sheathing,” a press release from ABF said.
“I am inspired by ABF’s mission to develop a domestic supply chain for LFP batteries, especially in light of the pandemic’s crippling effect on availability and our country’s glaring void in battery cell manufacturing,” Herbermann said about his new role. “With its strategic approach of constructing a network of modular rapid construction factories near or onsite at pack integrators and energy solution providers, ABF is on track to solve one of the planet’s most pressing energy needs. I look forward to being a part of this impactful work.”
I’d love to hear from you! f you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
