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LG Energy Solutions shifts plans for Arizona plant

(Credit: LGES)

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LG Energy Solution (LGES) recently announced that its battery facility in Arizona will become a key production hub for 46-series cylindrical cells in North America. After announcing its Q3 2023 earnings, LGES stated it aimed to preemptively respond to market demand for 46-series cylindrical cells. 

“In response to constantly evolving and diversified market needs, we will secure differentiated production competitiveness across all segments, ranging from premium and mainstream to affordable,” said Youngsoo Kwon, CEO of LG Energy Solution. “This will become our core engine for consistent mid-to-long term growth, upon which we will become a global leader providing the world-best value to our customers.”

The Arizona plant was initially expected to produce 2170 cells at an annual capacity of 27 GWh. However, the Korean battery supplier has decided to pivot its plans in Arizona and will instead produce 46-series cells and expand its annual production capacity to 36 GWh. LGES aims to start production on 46-series cells in Arizona by late 2025. 

Earlier this year, the long-time Tesla battery supplier quadrupled its investment in the Arizona plant from $1.4 billion to $5.5 billion. At the time, LGES claimed the increased investment was due to strong demand for electric vehicles. However, after announcing its Q3 2023 sales, LGES tempered revenue expectations for 2024.

LGES posted a revenue of KRW 8.22 trillion, down 6.3% quarter-on-quarter and an increase of 7.5% year-over-year. It reported an operating profit of KRW 7.31.2 billion, up 58.7% quarter-on-quarter and 40.1% yoy. 

The Korean battery supplier’s operating profit included the estimated IRA tax credit amount of KRW 215.5 billion—an increase of 94% compared to the previous quarter. The increase in LGES’ IRA tax credit amount was attributed to production and sales improvements thanks to the company’s ramped-up capacity in the United States. Without IRA Tax credits, LGES’ operating profit would be KRW 515.7 billion with a margin of 6.3%. 

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“With demand slowdown in Europe, EV production adjustment from OEMs, and reflection of metal price into average selling price (ASP) erosion, we saw a modest decline in our quarterly revenue,” explained Chang Sil Lee, CFO of LG Energy Solution. “Nonetheless, operating profit increased thanks to product mix improvement, enhanced productivity of new lines, and efforts for expense efficiencies.”

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via X @Writer_01001101.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla offers new deal on used inventory that you won’t want to pass up

Tesla opened up lease deals on used Model 3 and Model Y inventory in California and Texas on Tuesday, marking the first time it has launched the option on pre-owned cars.

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Credit: Tesla

Tesla is offering a new deal on its used vehicle inventory that consumers looking for a great deal won’t want to pass up.

Traditionally, Tesla has not allowed potential car buyers to lease its used inventory. The only two options were to buy with cash or finance it through Tesla or a bank.

However, with the elimination of the $7,500 new and $4,000 used EV tax credits, Tesla is breaking its own rules and is now offering lease deals on its used vehicle inventory, but only in a couple of states, as of right now.

Tesla is ready with a perfect counter to the end of US EV tax credits

Tesla opened up lease deals on used Model 3 and Model Y inventory in California and Texas on Tuesday, marking the first time it has launched the option on pre-owned cars.

The deals are tremendous and can cost as little as $0 down and under $225 per month for some vehicles.

Tesla also allows customers to buy the vehicle at the end of their lease deal, which enables some really great ways to end up an owner of the car you plan to drive for the next two or three years.

The lease deal also helps Tesla rid itself of older vehicles that might not be of future use to the company. It formerly planned to use leased vehicles in its eventual Robotaxi fleet, but many of the cars in its used inventory have Hardware 3, which is less capable than Hardware 4, which is installed in the new Model 3 and Model Y.

More importantly, Tesla is giving people yet another way to be in the market for a Tesla before the tax credit ends on September 30.

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Tesla Model Y L might not come to the U.S., and it’s a missed opportunity

The Model Y L has a variety of big changes that would be advantageous for the U.S. market, including a longer wheelbase, more comfortable seats, a third row that appears to be more spacious than Tesla’s six-seat Model Y that it previously offered, B-Pillar vents for rear passengers, and more.

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Credit: Tesla China

Tesla’s new Model Y L might not come to the U.S., CEO Elon Musk said this morning.

It’s a missed opportunity, and I’m not the only one who feels this way.

In the past, I have personally written a handful of articles about what Tesla owners have been wanting in the United States: a full-sized SUV, or at least a vehicle that is larger than the Model Y but less of a crossover than the Model X.

Tesla is missing one type of vehicle in its lineup and fans want it fast

The only thing that Tesla has announced that even slightly matches this sort of idea is the Robovan, which is, optimistically, several years off because it lacks a steering wheel and pedals and will require Full Self-Driving to be fully autonomous.

Even if Tesla launches FSD next year, it will take a year or two to figure out manufacturing, go through regulatory hurdles with the EPA, and eventually enter mass production for customers.

The Model Y L has a variety of big changes that would be advantageous for the U.S. market, including a longer wheelbase, more comfortable seats, a third row that appears to be more spacious than Tesla’s six-seat Model Y that it previously offered, B-Pillar vents for rear passengers, and more.

However, Musk said it won’t come to the U.S. until next year, and that it “might not ever, given the advent of self-driving in America.”

To be blunt, I’m not sure if I truly believe that Musk thinks the Model Y L won’t come to the U.S. Some believe he said this to not Osborne Effect Model Y sales here, which seems more likely than anything.

Tesla Model Y L gets disappointingly far production date in the United States

People have been buying the Model Y for two years more than any other car in the world. To act as if many families would not appreciate the extra space seems very strange; a big complaint with the Model Y is that it simply does not fit larger families.

If you have four kids, you’re forced into the Model X, which might be too expensive for some families, as it starts at $79,990.

While Tesla’s focus is undoubtedly on autonomy, it is important to remember that some people still really enjoy the act of driving their cars. Tesla has worked very hard to create a fun and sporty driving experience, especially in the new Model Y. Many consumers, including myself, like to take advantage of that.

Autonomy might eventually take over human driving completely, but in the near term, it does not seem as if that is the case. Even if someone were interested in never driving again, this longer and more spacious Model Y L would be an ideal option for American families that need the room for at least six passengers.

Quite a few big names in the Tesla community share this sentiment:

More than likely, Musk does not want to announce a more attractive option than the current Model Y, as many consumers would likely wait a year or two for the L in an effort to have more space.

In all honesty, I see the Model Y L coming to the United States, as it truly fits the bill as an ideal car for the modern American family.

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Elon Musk

Tesla’s Elon Musk shares optimistic teaser about FSD V14: “Feels sentient”

FSD V14 is arguably the second biggest update to Tesla AI/Autopilot after the release of V12, Musk wrote.

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Credit: Tesla Europe & Middle East/X

Tesla CEO Elon Musk has provided a rather exciting teaser about the capabilities of Full Self-Driving’s (FSD) upcoming V14 update. 

As per Musk, V14 is arguably the second biggest update to Tesla AI/Autopilot after the release of V12, which started its initial rollout to Tesla employees way back November 2023.

Tesla FSD V14

Elon Musk has been teasing the capabilities of FSD V14 in recent weeks. Earlier this month, the CEO shared that FSD V14 will feature a 10X higher parameter count, and it will also nag drivers significantly less than the system’s current iteration. While FSD V14 is not Unsupervised FSD, which is being used in the Austin Robotaxi pilot, it is expected to be a significant improvement nonetheless.

“The FSD release in about 6 weeks will be a dramatic gain with a 10X higher parameter count and many other improvements. It’s going through training & testing now. Once we confirm real-world safety of FSD 14, which we think will be amazing, the car will nag you much less,” Musk wrote in his post.

“Feels sentient”

Musk recently shared some more details about FSD V14 on X. In response to a video of a William Blair analyst who mentioned that Tesla’s Robotaxi service felt a lot more like a person was driving it compared to Waymo’s robotic maneuvers, Musk noted that “Version 14 of Tesla self-driving fells sentient.”

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Musk also clarified that the system that the William Blair analyst experienced was Version 13, so the system’s performance will definitely get even better. “He was just on version 13. Version 14 is the second biggest update to Tesla AI/Autopilot ever after V12. It feels alive,” Musk wrote in his post.

Musk’s comments bode well for the rollout of FSD V14. So far, FSD has reached a point where drivers and passengers have commented that the system already operates a vehicle in a very cautious and humanlike manner. Having a system that feels “sentient,” as the CEO noted, would most definitely be game-changing.

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