A chairman from China-based battery giant Contemporary Amperex Technology Co. Limited (CATL) recently cast doubt on Tesla’s 4680 battery cell, saying that he didn’t think it would be successful in the long run.
In a conversation earlier this year, CATL Chairman Robin Zeng told Elon Musk that the cylindrical 4680 battery “is going to fail and never be successful,” according to a report from Reuters this week. Zeng made the statements to Musk in a meeting with the Tesla CEO on his Beijing visit in April, and the chairman also said that the Tesla CEO was better equipped to handle other technologies than battery cells.
“We had a very big debate, and I showed him,” Zeng said. “He was silent. He doesn’t know how to make a battery. It’s about electrochemistry. He’s good for the chips, the software, the hardware, the mechanical things.”
Tesla working on four dry cathode 4680 battery variants: The Information
Tesla’s 4680 battery cell and CATL licensing
In September, Tesla announced that it had produced its 100 millionth 4680 battery cell at Gigafactory Texas, after reaching 50 million units in June. The company is also in the process of expanding its Gigafactory Nevada to add a dedicated 4680 cell production facility, expected to ramp up to 500 GWh in the long term.
The report also highlights a licensing deal Tesla has with CATL for technology related to producing batteries in Nevada, expected to officially launch in 2025, according to a person with knowledge of the matter who spoke to Reuters under the condition of anonymity.
Zeng on FSD Supervised and Musk’s promise timelines
In addition to discussing battery technology, the chairman said that he and Musk talked about the company’s focus on autonomy, adding that he agrees with Tesla’s overall approach to the topic. Unlike other companies that are developing self-driving systems, Tesla’s Supervised Full Self-Driving (FSD) only utilizes cameras as sensors, rather than using multiple layers of different redundant technologies.
“He’s all in,” Zeng told Reuters regarding Musk and Tesla’s FSD strategy in a statement earlier this month. “I think it’s a good direction.”
Despite his support for the company’s approach to FSD Supervised, Zeng also noted that he thinks Musk tends to set unrealistic timelines for new vehicle technologies, and he even asked the Tesla CEO during the April conversation, saying two-year timelines may as well be “infinity.”
“His problem is overpromising. I talked to him,” the chairman added. “Maybe something needs five years. But he says two years. I definitely asked him why. He told me he wanted to push people.”
Musk has addressed criticisms of his timelines before, pointing to his optimism as a necessary part of his accomplishments.
While certainly not perfect, my batting average for most predictions is quite good.
My schedule optimism, without which I probably wouldn’t even have tried to do many endeavors, gets the best of me sometimes, but I always deliver in the end.— Elon Musk (@elonmusk) December 30, 2023
“Now, admittedly I’m a little optimistic sometimes,” Musk said during this year’s Annual Shareholders Meeting. “You know, I don’t have a complete lack of self awareness. But if I wasn’t optimistic, this wouldn’t exist this factory wouldn’t exist.”
The CEO later went on to add that he believes he’s been “pathologically optimistic from birth.”
CATL hopes for U.S. factory under Trump
CATL also told Reuters that it would build a U.S. production facility if President-elect Donald Trump would allow it.
“Originally, when we wanted to invest in the U.S., the U.S. government said no,” Zeng said. “For me, I’m really open-minded.”
“I do hope that in the future they are open to investments,” the chairman added.
In August, Trump expressed that he would be open to Chinese companies building factories in the U.S., despite the country’s recent passage of a 100-percent tariff on electric vehicle (EV) imports.
“We’re going to give incentives, and if China and other countries want to come here and sell the cars, they’re going to build plants here, and they’re going to hire our workers,” Trump said in a statement to the publication in August.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
CATL’s new LFP cell has 620+ miles of range and ultra-fast charging
Tesla Cybercab is perhaps the most highly-anticipated project that the company plans to roll out this year, and as it is undergoing its testing phase in pre-production currently, there are some things to work through with it.
Over the weekend, an image of the Cybercab being loaded onto a tow truck started circulating on the internet, and people began to speculate as to what the issue could be.
Hmmmmmm… https://t.co/L5hWcOXQkb pic.twitter.com/OJBDyHNTMj
— TESLARATI (@Teslarati) January 11, 2026
The Cybercab can clearly be seen with a Police Officer and perhaps the tow truck driver by its side, being loaded onto, or even potentially unloaded from, the truck.
However, it seems unlikely it was being offloaded, as its operation would get it to this point for testing to begin with.
It appears, at first glance, that it needs assistance getting back to wherever it came from; likely Gigafactory Texas or potentially a Bay Area facility.
The Cybercab was also spotted in Buffalo, New York, last week, potentially undergoing cold-weather testing, but it doesn’t appear that’s where this incident took place.
It is important to remember that the Cybercab is currently undergoing some rigorous testing scenarios, which include range tests and routine public road operation. These things help Tesla assess any potential issue the vehicle could run into after it starts routine production and heads to customers, or for the Robotaxi platform operation.
This is not a one-off issue, either. Tesla had some instances with the Semi where it was seen broken down on the side of a highway three years ago. The all-electric Semi has gone on to be successful in its early pilot program, as companies like Frito-Lay and PepsiCo. have had very positive remarks.
The Cybercab’s future is bright, and it is important to note that no vehicle model has ever gone its full life without a breakdown. It happens, it’s a car.
Nevertheless, it is important to note that there has been no official word on what happened with this particular Cybercab unit, but it is crucial to remember that this is the pre-production testing phase, and these things are more constructive than anything.
Tesla analyst Andrew Percoco of Morgan Stanley teased the company’s dominance in its self-driving initiative, stating that its lead over competitors is “not even close.”
Percoco recently overtook coverage of Tesla stock from Adam Jonas, who had covered the company at Morgan Stanley for years. Percoco is handling Tesla now that Jonas is covering embodied AI stocks and no longer automotive.
His first move after grabbing coverage was to adjust the price target from $410 to $425, as well as the rating from ‘Overweight’ to ‘Equal Weight.’
Percoco’s new note regarding Tesla highlights the company’s extensive lead in self-driving and autonomy projects, something that it has plenty of competition in, but has established its prowess over the past few years.
He writes:
“It’s not even close. Tesla continues to lead in autonomous driving, even as Nvidia rolls out new technology aimed at helping other automakers build driverless systems.”
Percoco’s main point regarding Tesla’s advantage is the company’s ability to collect large amounts of training data through its massive fleet, as millions of cars are driving throughout the world and gathering millions of miles of vehicle behavior on the road.
This is the main point that Percoco makes regarding Tesla’s lead in the entire autonomy sector: data is King, and Tesla has the most of it.
One big story that has hit the news over the past week is that of NVIDIA and its own self-driving suite, called Alpamayo. NVIDIA launched this open-source AI program last week, but it differs from Tesla’s in a significant fashion, especially from a hardware perspective, as it plans to use a combination of LiDAR, Radar, and Vision (Cameras) to operate.
Percoco said that NVIDIA’s announcement does not impact Morgan Stanley’s long-term opinions on Tesla and its strength or prowess in self-driving.
NVIDIA CEO Jensen Huang commends Tesla’s Elon Musk for early belief
And, for what it’s worth, NVIDIA CEO Jensen Huang even said some remarkable things about Tesla following the launch of Alpamayo:
“I think the Tesla stack is the most advanced autonomous vehicle stack in the world. I’m fairly certain they were already using end-to-end AI. Whether their AI did reasoning or not is somewhat secondary to that first part.”
Percoco reiterated both the $425 price target and the ‘Equal Weight’ rating on Tesla shares.
Elon Musk
Donald Trump turns to Elon Musk and Starlink amid Iran internet blackout
Donald Trump has stated that he plans to speak with SpaceX CEO Elon Musk about restoring internet access in Iran.
Donald Trump has stated that he plans to speak with SpaceX CEO Elon Musk about restoring internet access in Iran, as authorities in the country implement an internet blackout amid nationwide anti-government protests.
Trump points to Starlink
Speaking to reporters in Washington, Trump said Musk would be well-suited to help restore connectivity in Iran, citing his experience operating large-scale satellite networks, as noted in a Reuters report. “He’s very good at that kind of thing, he’s got a very good company,” Trump said.
Iran has experienced a near-total internet shutdown for several days, severely limiting the flow of information as protests escalated into broader demonstrations against the country’s rulers.
Starlink has previously been used in Iran during periods of unrest, allowing some users to access the global internet despite government blocks. Neither Musk nor SpaceX immediately commented on Trump’s remarks, but Musk has publicly supported efforts to provide Starlink access to Iranians during earlier periods of unrest.
Renewed Trump–Musk ties
Trump’s comments come amid a thaw in his previously strained relationship with Musk. The two had a public falling-out last year over domestic policy disagreements but have since appeared together publicly, including at Trump’s Mar-a-Lago resort. The renewed ties now intersect with foreign policy, as Starlink has become a strategic tool in regions facing censorship or conflict.
The satellite service has also played a prominent role elsewhere, most notably in Ukraine, highlighting both its potential impact and the political sensitivities surrounding its use. In Iran, Starlink support previously followed coordination between Musk and U.S. officials during protests in 2022.
The current internet blackout in Iran has drawn international attention, with rights groups estimating hundreds of deaths and thousands of arrests since demonstrations intensified late last year. Iranian authorities have not released official casualty figures, and outside verification remains limited due to restricted communications.
Tesla Cybercab ‘breakdown’ image likely is not what it seems
Tesla analyst teases self-driving dominance in new note: ‘It’s not even close’
