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.”
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Tesla Cybercab tests are going on overdrive with production-ready units
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the vehicle being reported across social media this week.
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the autonomous two-seater being reported across social media this week. Based on videos of the vehicle that have been shared online, it appears that Cybercab tests are underway across multiple states.
Recent Cybercab sightings
Reports of Cybercab tests have ramped this week, with a vehicle that looked like a production-ready prototype being spotted at Apple’s Visitor Center in California. The vehicle in this sighting was interesting as it was equipped with a steering wheel. The vehicle also featured some changes to the design of its brake lights.
The Cybercab was also filmed testing at the Fremont factory’s test track, which also seemed to involve a vehicle that looked production-ready. This also seemed to be the case for a Cybercab that was spotted in Austin, Texas, which happened to be undergoing real-world tests. Overall, these sightings suggest that Cybercab testing is fully underway, and the vehicle is really moving towards production.
Production design all but finalized?
Recently, a near-production-ready Cybercab was showcased at Tesla’s Santana Row showroom in San Jose. The vehicle was equipped with frameless windows, dual windshield wipers, powered butterfly door struts, an extended front splitter, an updated lightbar, new wheel covers, and a license plate bracket. Interior updates include redesigned dash/door panels, refined seats with center cupholders, updated carpet, and what appeared to be improved legroom.
There seems to be a pretty good chance that the Cybercab’s design has been all but finalized, at least considering Elon Musk’s comments at the 2025 Annual Shareholder Meeting. During the event, Musk confirmed that the vehicle will enter production around April 2026, and its production targets will be quite ambitious.
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Tesla gets a win in Sweden as union withdraws potentially “illegal” blockade
As per recent reports, the Vision union’s planned anti-Tesla action might have been illegal.
Swedish union Vision has withdrawn its sympathy blockade against Tesla’s planned service center and showroom in Kalmar. As per recent reports, the Vision union’s planned anti-Tesla action might have been illegal.
Vision’s decision to pull the blockade
Vision announced the blockade in early December, stating that it was targeting the administrative handling of Tesla’s facility permits in Kalmar municipality. The sympathy measure was expected to start Monday, but was formally withdrawn via documents sent to the Mediation Institute and Kalmar Municipality last week.
As noted in a Daggers Arbete report, plans for the strike were ultimately pulled after employer group SKR highlighted potential illegality under the Public Employment Act. Vision stressed its continued backing for the Swedish labor model, though Deputy negotiation manager Oskar Pettersson explained that the Vision union and IF Metall made the decision to cancel the planned strike together.
“We will not continue to challenge the regulations,” Petterson said. “The objection was of a technical nature. We made the assessment together with IF Metall that we were not in a position to challenge the legal assessment of whether we could take this particular action against Tesla. Therefore, we chose to revoke the notice itself.”
The SKR’s warning
Petterson also stated that SKR’s technical objection to the Vision union’s planned anti-Tesla strike framed the protest as an unauthorized act. “It was a legal assessment of the situation. Both for us and for IF Metall, it is important to be clear that we stand for the Swedish model. But we should not continue to challenge the regulations and risk getting judgments that lead nowhere in the application of the regulations,” he said.
Vision ultimately canceled its planned blockade against Tesla on December 9. With Vision’s withdrawal, few obstacles remain for Tesla’s long-planned Kalmar site. A foreign electrical firm completed work this fall, and Tesla’s Careers page currently lists a full-time service manager position based there, signaling an imminent opening.
Tesla Semi Program Director Dan Priestly teased the major improvements to the all-electric Class 8 truck on Thursday night, following the company’s decision to overhaul the design earlier this year.
Priestley said he drove the Semi on Thursday, and the improvements appear to be welcomed by one of the minds behind the project. “Our customers are going to love it,” he concluded.
Just drove the redesigned Semi. Our customers are going to love it. https://t.co/KZ88sf1CDL
— Dan Priestley (@danWpriestley) December 19, 2025
The small detail does not seem like much, but it is coming from someone who has been involved in the development of the truck from A to Z. Priestley has been involved in the Semi program since November 2015 and has slowly worked his way through the ranks, and currently stands as the Director of the program.
Tesla Semi undergoes major redesign as dedicated factory preps for deliveries
Tesla made some major changes to the Semi design as it announced at the 2025 Annual Shareholder Meeting that it changed the look and design to welcome improvements in efficiency.
Initially, Tesla adopted the blade-like light bar for the Semi, similar to the one that is present on the Model Y Premium and the Cybertruck.
Additionally, there are some slight aesthetic changes to help with efficiency, including a redesigned bumper with improved aero channels, a smaller wraparound windshield, and a smoother roofline for better aero performance.
All of these changes came as the company’s Semi Factory, which is located on Gigafactory Nevada’s property, was finishing up construction in preparation for initial production phases, as Tesla is planning to ramp up manufacturing next year. CEO Elon Musk has said the Semi has attracted “ridiculous demand.”
The Semi has already gathered many large companies that have signed up to buy units, including Frito-Lay and PepsiCo., which have been helping Tesla test the vehicle in a pilot program to test range, efficiency, and other important metrics that will be a major selling point.
Tesla will be the Semi’s first user, though, and the truck will help solve some of the company’s logistics needs in the coming years.
Tesla Cybercab tests are going on overdrive with production-ready units
Tesla gets a win in Sweden as union withdraws potentially “illegal” blockade
