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.”
Elon Musk
Elon Musk commends Tesla team on successful Robotaxi launch
Tesla CEO Elon Musk commended the company on the successful launch of Robotaxi.

Tesla CEO Elon Musk commented on the company’s launch of the Robotaxi platform, which officially went live to a small group on Sunday in Austin, Texas.
It is the first time Tesla has offered driverless rides through the ride-hailing platform it has worked to activate for several years, and it was overwhelmingly successful based on early reviews.
The launch was coupled with the release of the first-ever looks at the Tesla Robotaxi app, which does more than allow riders to summon vehicles for transportation. It also allows the rider to adjust climate settings in the car before it arrives for a comfortable ride, and it will sync entertainment and streaming settings to keep occupants entertained.
Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch
The first rides are being performed with a safety monitor in the passenger’s seat. These monitors have no control over the vehicle, and are there just to ensure smooth operation.
The first reviews called rides “smooth” and “comfortable,” and commended Tesla for its hard work over the past few years to make this happen. Many were impressed with the cars’ ability to keep pedestrians safe, avoid congested parking lots, and the efficiency of the rides, as the time from the ride request to the Robotaxi accepting the ride was extremely fast.
Musk has been at the forefront of this operation for a decade, as Tesla has been working to release a version of the Robotaxi through the development of Full Self-Driving. This has been an effort that included seeking top-tier engineering talent and taking incredible leaps of faith, including switching to a Vision-only approach for Full Self-Driving.
Musk commended the Tesla team for its hard work:
Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!!
Culmination of a decade of hard work.
Both the AI chip and software teams were built from scratch within Tesla.
— Elon Musk (@elonmusk) June 22, 2025
It’s truly an incredible accomplishment, as many considered Robotaxi a “failure” despite it not even being rolled out. In May, we reported on media outlets calling the Robotaxi rollout a total failure, despite Tesla always maintaining the launch would happen in June:
Tesla Robotaxi deemed a total failure by media — even though it hasn’t been released
Hundreds of rides have already been taken, and there have not been many complaints. It’s an incredible jump forward for Tesla.
Elon Musk
Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch
The first reviews of Tesla Robotaxi are in, and those riders are impressed and astounded with the smooth and comfortable nature of the service.

Tesla Robotaxi riders are touting their awesome experiences in their first rides using the automaker’s new driverless ride-hailing service, which launched to a limited number of people yesterday for the first time.
On Sunday, Tesla officially launched Robotaxi, its driverless ride-hailing service, in downtown Austin. A select group of people were chosen to receive early access to the program, as well as the new Robotaxi app, which is used to request a ride and will sync everything from climate preferences to streaming settings with each pickup.
Teslarati gained access to the Early Access riders program and the Robotaxi app, giving us a first-hand look at the experience. We will be in Austin soon to test out the Robotaxi fleet for ourselves.
However, those who were there for the initial rides on Sunday had nothing but great things to say. Hundreds of rides were taken during the first hours of the Robotaxi program, and neither the company nor the riders reported any issues.
Here’s what people said about their experiences:
- “Extremely smooth stops,” and great awareness of road conditions, including pedestrians, speed bumps, and busy parking lots, were all handled with ease:
Robotaxi slows down really nice for speed bumps. Extremely smooth stops as well pic.twitter.com/H8R2pXllWB
— Zack (@BLKMDL3) June 22, 2025
- Safe navigation around pedestrians who walked just off the sidewalk into the road:
Tesla Robotaxi stops for a man who veered off the sidewalk and onto the road as @JoeTegtmeyer and I were approaching Zilker Park earlier today. The stop was smooth and our Tesla Robotaxi allowed him to get back on the sidewalk and continue with our journey. This man is likely… pic.twitter.com/fozP6A7esK
— JC Christopher (@JohnChr08117285) June 23, 2025
- “Just as good as it is during the daytime” at night. There were no changes to report by riders who took rides during the day and evening:
Here is my experience in one of the first public nighttime @Tesla Robotaxi rides. It was smooth, comfortable and just as good as it is during the daytime. pic.twitter.com/7bDvVaWf3A
— Sawyer Merritt (@SawyerMerritt) June 23, 2025
- Avoided expensive and stressful parking at local tourist hotspots like Terry Black’s Barbeque:
Here’s a huge benefit of Tesla Robotaxi-
Dropped us off in front of Terry Blacks, crazy hard to find parking here, yesterday it took me almost 30 minutes to find a spot and today, I got dropped off right in front.
Didn’t have to pay for parking either. Game changing. @robotaxi pic.twitter.com/yZjQ8u4s8X
— Zack (@BLKMDL3) June 22, 2025
- “Comfortable and similar to existing Tesla cars with FSD,” intuitive and “surreal” experience:
My thoughts after 3 Robotaxi rides:
– Very smooth and comfortable. Similar to existing Tesla cars with FSD.
– App UI is intuitive but can use a couple upgrades (placing a pin anywhere, change trip while in car)
– It is completely and totally surreal.As a Tesla owner and…
— Farzad (@farzyness) June 22, 2025
- The app is quicker than other ride-sharing services. When a destination is chosen, Robotaxi is already on the way to your location:
My thoughts after 13 Robotaxi rides.
-Driving is very comfortable. It feels similar to our FSD, but braking is even better.
-The app is super fast, pick a destination and the robotaxi is simultaneously on the way.
-Yes our cars do well on FSD, but no one in the driver seat,… pic.twitter.com/pkuaXVxuMP
— Dirty Tesla (@DirtyTesLa) June 23, 2025
News
Tesla Robotaxi rollout proves that Elon Musk still delivers, even if it’s late
Tesla is also still the company that makes the impossible feel late.

It took a long time, but Tesla has finally successfully rolled out its dedicated Robotaxi service in Austin this weekend. The initial rollout only involved a small fleet of cars operating in a small geofenced area in Texas, but it is still significant.
It does, if any, prove that Elon Musk is still capable of delivering on his promises, even if they are late. Tesla is also still the company that makes the impossible feel late.
Finally, a Rollout
Elon Musk has been predicting a Robotaxi rollout for years, so much so that even avid Tesla supporters have grown quite wary of his constant predictions. After a while, Elon Musk himself admitted that he has become the boy who cried FSD, though he still maintained that self-driving was really just around the corner.
This past weekend, Musk’s predictions finally came true. Actual paying customers used Tesla’s dedicated Robotaxi service for a small flat fee of $4.20 per ride. Elon Musk seemed quite happy with the Robotaxi’s initial launch, as evidenced by his congratulatory message to the Tesla AI team on X.
No More Tesla Vision Debates
One thing that is evident in Tesla’s initial Robotaxi rollout in Austin was the fact that the debate surrounding Tesla’s vision-only approach is completely gone now. With actual Robotaxis operating around Austin, there are no more questions about whether cars can navigate city streets on their own using only AI and cameras. They can, and safely too, at least based on Tesla’s initial fleet of Robotaxis.
The Beauty of Normalcy
The Robotaxi rides from Tesla owners who were fortunate enough to experience the first driverless rides from the EV maker’s fleet were quite uneventful. Comments on social media platforms such as X observed that the Robotaxis operated safely and cautiously, and their driving was actually smoother than some human drivers.
That may not sound very exciting at all, but that’s the beauty of it. Tesla’s Robotaxi service is designed to look and feel natural to people. And so far, it appears that Tesla is accomplishing this with its Robotaxi rollout.
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