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Tesla’s approach to battery technology keeps it ahead in the EV industry
Tesla’s dominance in the growing electric vehicle (EV) industry is largely attributed to its unique approach to its battery technology. The engineering behind the all-electric car maker’s cylindrical cells speaks for itself in terms of the performance and range achieved, but in a recent interview with a battery technology researcher, a few things detailed about Tesla’s batteries stood out in particular.
Ravindra Kempaiah is a Ph.D. scholar at the University of Illinois Chicago focusing on advanced battery materials for his thesis. In his interview with Tesla owner and host of All Things EV, Sean Mitchell, Kempaiah explained lithium-ion technology in EVs and the primary issues faced in their development. Overall, the biggest challenge is balancing the three main components in battery production: energy density, cost, and cycle life. Increasing one area will significantly impact the other, and the ideal equation is always being sought after. For example, if you increase energy density for higher range and lower cost, the cycle life takes a major hit. If you increase density and life cycle, the battery alone can cost as much as $100k, as described by Kempaiah.
“We always want more range. We always want higher cycle life. We want our batteries to last 15-20 years and the car to go 500 miles, but this is a problem every battery scientist has faced for the last 30 years,” Kempaiah commented in the interview.
Tesla deals with the same balancing act as other battery-electric car makers; however, there are key factors which seem to have kept the company ahead in the industry.
First, Tesla’s choice of cylindrical cells sets it apart from every other electric vehicle on the market. This provides several advantages that drive performance, flexibility, and cost control. Notably, Rivian is also using cylindrical cells, although their vehicles are not yet under production.
Out of the three types of cells available (cylindrical, prismatic, and pouch cells), cylindrical is the most cost-effective to produce. Namely, the cost per kWh is lower in cylindrical cells versus other types. The metallic jacket around the 18650 and 2170 cylindrical cells used in the Tesla Model S/X and Model 3, respectively, acts as scaffolding and provides structural rigidity to the battery. Additionally, in high powered situations, current draw and distribution of power is over the entirety of the battery pack instead of concentrated in a certain section, according to Kempaiah.
Second, Tesla uses a liquid-cooled thermal management system to manage battery temperatures whereas other automakers take a more economical air cooling approach. By adjusting the temperature of the battery pack, Tesla is able to ensure that cells are operating in their most efficient and optimal states, thereby maximizing battery longevity as well as performance. While reducing cost is an important factor in accelerating the growth of the electric vehicle market, Tesla’s investment in thermal management technology provides an upside for owners who may be looking for longevity and long-term affordability of their cars.
Third, Tesla has actively sought to limit the amount of cobalt it uses in its batteries and already uses less of the element than other companies in the Model 3 batteries. The scarcity of cobalt and its mining sources have subjected it to socioeconomic situations that are more than problematic in the United States, i.e., child labor and similar abuses are widespread in its sourcing. With this in mind, Tesla has been working on the question, “Is cobalt really needed?”
Cobalt is used as a cathode in battery technology, and out of all cathode materials available, it has the highest cost both fiscally and politically. Current consensus on battery technology says that without cobalt, the structural integrity and cycle life in batteries is compromised, as described in the interview. However, some recent scientific literature was cited by Kempaiah that indicated higher nickel content limited the impact of cobalt on batteries, possibly removing the need to use it at all. Nickel is more widely available across the globe, which keeps its cost down and mitigates the socioeconomic impacts often associated with resource mining operations. Overall, the discussion between Mitchell and Kempaiah indicated that Tesla can probably go cobalt-free soon, making it less vulnerable to the cobalt industry.
Finally, Tesla takes great care to educate its customers about proper battery maintenance, especially with regard to the negative impact of bad charging habits. Specifically, keeping an electric car battery charged at 100% for long periods degrades the battery very quickly, while keeping charging states within an optimal range will give it a long life. Tesla makes it a point to communicate to customers the importance of battery health on their overall ownership experience and value of their purchase.
When asked for his opinion by Mitchell, Kempaiah attributed the lack of education by other brands as a disconnect between engineering teams and marketing teams. While battery “best practices” are provided to EV customers by all manufacturers, the importance of communicating the true impact of bad charging habits may not be emphasized enough to be included as prominently as it should.
In summary, Tesla is constantly developing the technology in its vehicles, and its particular attention to its batteries looks to have given the company a significant advantage over its competitors. Perhaps other automakers will take a few tips from Tesla in the future, even if it’s as limited as improving communications with customers.
Watch Sean Mitchell’s full interview with Ravindra Kempaiah below:
Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
Elon Musk says this part of Tesla ‘makes no sense’
