Tesla sources many of its battery cells from third-party suppliers, like Panasonic, LG Chem, and CATL. Because of the massive rate at which Tesla buys these cells, it is paying significantly less per kilowatt-hour compared to its competitors, according to a new report from Cairn Energy Research Advisors.
With battery packs making up most of an electric vehicle’s cost, cells are the most important factor in controlling the price. The more a company buys, the less it costs, just like a wholesale retail store like Sam’s Club or Costco: the more you buy, the less per unit. In this case, electric vehicle companies compare their prices by kWh, and Tesla has a controlling lead in the sector, Cairn said, and it will last through the decade.
“Tesla is definitely putting the hammer down on the accelerator pedal. They see this as the crucial period, and they’re building out their capacities,” Managing Director of Cairn, Sam Jaffe, said. Mentioning the company’s Berlin, Shanghai, and Austin production plants, it is evident Tesla is piling on the output to decrease costs and make the most affordable (and highest-performing) electric cars on the market.
According to Cairn’s research, Tesla pays an average of $142 per kWh for cells purchased from its three previously mentioned suppliers. Meanwhile, companies like GM are paying $169 per kWh, while the industry average runs around $186, according to the firm’s report. Furthermore, Tesla’s packs cost $187 per kWh on average, with GM’s costing $207 per kWh and the industry average being $246 per kWh.
How has Tesla managed to pay so much less per kWh than competitors? Cairn says it is because Elon Musk and his team of highly-trained engineers and developers have done everything in their power to cut costs of its cars, a strategy outlined in the Tesla Master Plan.
Tesla (TSLA) shares snatched up by ARK after Battery Day: “It’s going to be hard to catch up”
“Everything is focused on cost. The lower the cost, the more affordable the cars become,” Jaffe said, according to CNBC.
Tesla’s work is far from finished too. Chasing the elusive $100 per kWh point, which is the widely-agreed upon price point that would match EV’s price to gas-powered cars, was outlined at Tesla’s Battery Day event in September, where Elon Musk outlined the company’s plan to decrease battery costs by up to 54%. This was outlined through a plan of mass-scale production, more affordable materials, and new manufacturing strategies. Additionally, Tesla plans to manufacture some of the cells in-house at its Kato Road facility.
Because of Tesla’s developments, Cairn believes it will remain the leader in battery cells throughout the decade. With some analysts predicting that Volkswagen would be the company to challenge Tesla, Cairn believes GM is the true number two.
Jaffe said:
“GM is fully committed and is taking this complete integrative approach which is going to allow it to be very close to Tesla, although the scale still isn’t in the same ballpark as what Tesla is planning.”
Tesla has expanded its branded ‘For Business’ Supercharger program that it launched last year, as yet another company is using the platform to attract EV owners to its business and utilize a unique advertising opportunity.
Francis Energy of Oklahoma is launching four Superchargers in Norman, where the University of Oklahoma is located. The Superchargers, which are fitted with branding for Francis Energy, will officially open tomorrow.
It will not be the final Supercharger location that Francis Energy plans to open, the company confirmed to EVWire.
Back in early September, Tesla launched the new “Supercharger for Business” program in an effort to give businesses the ability to offer EV charging at custom rates. It would give their businesses visibility and would also cater to employees or customers.
“Purchase and install Superchargers at your business,” Tesla wrote on a page on its website for the new program. “Superchargers are compatible with all electric vehicles, bringing EV drivers to your business by offering convenient, reliable charging.”
The first site opened in Land O’ Lakes, Florida, which is Northeast of Tampa, as a company called Suncoast launched the Superchargers for local EV owners.
Tesla launches its new branded Supercharger for Business with first active station
The program also does a great job at expanding infrastructure for EV owners, which is something that needs to be done to encourage more people to purchase Teslas and other electric cars.
Francis Energy operates at least 14 EV charging locations in Oklahoma, spanning from Durant to Oklahoma City and nearly everywhere in between. Filings from the company, listed by Supercharge.info, show the company’s plans to convert some of them to Tesla Superchargers, potentially utilizing the new Supercharger for Business program to advertise.
Moving forward, more companies will likely utilize Tesla’s Supercharger for Business program as it presents major advantages in a variety of ways, especially with advertising and creating a place for EV drivers to gain range in their cars.
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.
Tesla expands its branded ‘For Business’ Superchargers
Tesla Cybercab ‘breakdown’ image likely is not what it seems
