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Tesla’s years of battery tech investments are becoming a buffer against nickel’s rising costs
For years, Tesla has invested heavily in its supply chain and battery strategy. So focused was the company in these endeavors that it even decided to design and produce its own batteries, the 4680 cells. The next-generation cells are a crucial component of Tesla’s long-term plan to make electric vehicles more affordable.
Elon Musk has been very open about Tesla’s need for nickel. Being a key component of its high-performance batteries, Musk stated back in 2020 that any company that can provide Tesla with environmentally-friendly nickel would be granted with a massive contract. During Battery Day, the CEO also highlighted that Tesla’s nickel-based 4680 batteries would be the heart of the company’s flagship products, like the Cybertruck.
But while nickel is a critical ingredient of lithium-ion batteries, experts have predicted an upcoming shortage for some time. Norway-based energy analytics firm Rystad Energy estimated that demand would surpass nickel supply around 2024, and by 2026, there might be a shortage of the material. This timeframe seems to have been accelerated by Russia’s invasion of Ukraine.
It should be noted that Russia controls 20% of the supply of the industry’s highest-grade nickel. The country also holds 10% of the world’s overall nickel supply. Thus, when Russia was hit by sanctions due to its invasion of Ukraine, the markets reacted. Nickel prices rose so much that the London Metal Exchange canceled trading for the material for more than a week. In a statement to Insider, auto industry analyst Lauren Fix noted that Russia’s control of nickel could have adverse effects for electric vehicle makers.
“Relying on your enemies to supply you with critical materials is never to your benefit. They have the ability to control the price you pay and can make it more difficult for you to gain supply to meet your goals,” Fix said.
Tesla is the market’s dominant electric vehicle maker, and for good reason. For years, the company has initiated plans to be as immune as possible from market shifts. Tesla built up a nickel supply practically independent of many market shifts by tapping into partnerships with nickel-mining companies and nickel production entities. The company even bought into a nickel mine in early 2021, providing itself with direct access to the material.
Tesla has also worked heavily in its battery technology, from the 2170 cells currently being made in Gigafactory Nevada with Panasonic to the 4680 cells that are currently being ramped in the company’s Kato Road facility. Tesla’s 4680 batteries were announced as nickel-based cells, though they feature a number of efficiencies that make their production more cost-effective and their life cycle longer compared to traditional batteries.
Interestingly enough, Tesla is not keeping its 4680 battery technology all for itself. In a previous announcement, Panasonic has confirmed that it would also be producing 4680 batteries, and they have already been validated by the electric vehicle maker. Panasonic has noted that mass production of the next-generation cells would begin around 2024.
Tesla also managed to handle the rising cost of nickel by using batteries that do not use the material at all. As per CEO Elon Musk, Tesla has started focusing on using iron-based batteries for its entry-level vehicles like the Model 3 RWD and the Model Y RWD, both of which are produced in Gigafactory Shanghai. The company has also mentioned that it had begun using manganese for some of its batteries to help reduce its reliance on nickel. Lastly, Tesla also launched a recycling program for its nickel-based batteries, which should help the company’s supply chain further in the future.
Tesla is still affected by shifts in the market. The fact that the company has raised its vehicle prices twice in recent weeks is proof of that. However, a number of experts have stated that Tesla’s forward-looking strategy still makes the company well-positioned to continue in its role as the undisputed leader in the electric vehicle industry. Tien Wong, a tech investor and the founder of Connectpreneur, shared his thoughts on the matter.
“Prewar, nickel prices, and potential shortages were a huge concern of Elon’s and the EV industry as a whole. The war will exacerbate these dynamics, which will result in higher prices and slower deliveries for EVs. As for Tesla, they are the market leader right now, so the nickel situation may actually help them versus competitors in the short run,” Wong said.
*Quotes courtesy of Insider.
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Elon Musk
Tesla showcases Optimus humanoid robot at AWE 2026 in Shanghai
Tesla’s humanoid robot was presented as part of the company’s exhibit at the Shanghai electronics show.
Tesla showcased its Optimus humanoid robot at the 2026 Appliance & Electronics World Expo (AWE 2026) in Shanghai. The event opened Thursday and featured several Tesla products, including the company’s humanoid robot and the Cybertruck.
The display was reported by CNEV Post, citing information from local media outlet Cailian and on-site staff at the exhibition.
Tesla’s humanoid robot was presented as part of the company’s exhibit at the Shanghai electronics show. On-site staff reportedly stated that mass production of the robot could begin by the end of 2026.
Tesla previously indicated that it plans to manufacture its humanoid robots at scale once production begins, with its initial production line in the Fremont Factory reaching up to 1 million units annually. An Optimus production line at Gigafactory Texas is expected to produce 10 million units per year.
Tesla China previously shared a teaser image on Weibo showing a pair of highly detailed robotic hands believed to belong to Optimus. The image suggests a design with finger proportions and structures that closely resemble those of a human hand.
Robotic hands are widely considered one of the most difficult engineering challenges in humanoid robotics. For a system like Optimus to perform complex real-world tasks, from factory work to household activities, the robot would require highly advanced dexterity.
Elon Musk has previously stated that Optimus has the capability to eventually become the first real-world example of a Von Neumann machine, a self-replicating system capable of building copies of itself, even on other planets. “Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.
Elon Musk
Tesla Cybercab production line is targeting hundreds of vehicles weekly: report
According to the report, Tesla has been adding staff and installing new equipment at its Austin factory as it prepares to begin Cybercab production.
Tesla is reportedly designing its Cybercab production line to manufacture hundreds of the autonomous vehicles each week once mass production begins. The effort is underway at Gigafactory Texas in Austin as the company prepares to start building the Robotaxi at scale.
The details were reported by The Wall Street Journal, citing people reportedly familiar with the matter.
According to the report, Tesla has been adding staff and installing new equipment at its Austin factory as it prepares to begin Cybercab production.
People reportedly familiar with Tesla’s plans stated that the company has been growing its staff and bringing in new equipment to start the mass production of the Cybercab this April.
The Cybercab is Tesla’s upcoming fully autonomous two-seat vehicle designed without a steering wheel or pedals. The vehicle is intended to operate primarily as part of Tesla’s planned Robotaxi ride-hailing network.
“There’s no fallback mechanism here. Like this car either drives itself or it does not drive,” Musk stated during Tesla’s previous earnings call.
Tesla has indicated that Cybercab production could begin as soon as April, though Elon Musk has noted that early production will likely be slow before ramping over time. Musk has stated that the Cybercab’s slow ramp is due in no small part to the fact that it is a completely new vehicle platform.
Tesla’s Cybercab is designed to work with the company’s Full Self-Driving (FSD) system and support its planned autonomous ride-hailing service. The company has suggested that the vehicle could cost under $30,000, making it one of Tesla’s most affordable models if produced at scale. Musk has confirmed in a previous X post that the vehicle will indeed be offered to regular consumers at a price below $30,000.
Musk has previously stated that Tesla could eventually produce millions of Cybercabs annually if demand and production capacity scale as planned.
News
Tesla VP explains latest updates in trade secret theft case
Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.
Tesla Vice President Bonne Eggleston explained the latest updates in a trade secret theft case the company has against a former manufacturing equipment supplier, Matthews International.
Back in 2024, Tesla had filed a lawsuit against Matthews International, alleging that the firm stole trade secrets about battery manufacturing and shared those details with some of Tesla’s competitors.
Early last year, a U.S. District Court Judge denied Tesla’s request to block Matthews International from selling its dry battery electrode (DBE) technology across the world. The judge, Edward Davila, said that the patent for the tech was due to Matthews’ “extensive research and development.”
The two companies’ relationship began back in 2019, as Tesla hired Matthews to help build the equipment for its 4680 battery cell. Tesla shared confidential software, designs, and know-how under strict secrecy rules.
Fast forward a few years, and Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.
Now, the latest twist, as this month, a Judge issued a permanent injunction—a court order banning Matthews from using certain stolen Tesla parts or designs in their machines. Matthews is also officially “liable” for damages. The exact amount would still to be calculated later.
Bonne Eggleston, a VP for Tesla, said on X today that Matthews is a supplier who “exploited customer IP through theft or deception,” and has no place in Tesla’s ecosystem:
Buyer beware: Matthews International stole Tesla’s DBE technology and is now subject to an injunction and liable for damages.
During our work with Matthews, we caught them red-handed copying our technology—including proprietary software and sensitive mechanical designs—into… https://t.co/Toc8ilakeM
— Bonne Eggleston (@BonneEggleston) March 10, 2026
Tesla calls this a big win and warns other companies: “Buyer beware—don’t buy from thieves.”
Matthews hit back with a press release claiming victory. They say an arbitrator ruled they can keep selling their own DBE equipment to anyone and rejected Tesla’s request for a total sales ban. They call Tesla’s claims “nonsense” and insist their 20-year-old tech is independent. Both sides are spinning the same narrow ruling: Matthews can sell their version, but they’re blocked from using Tesla’s specific secrets.
What are Tesla’s Current Legal Options
The case isn’t over—it’s moving to the damages phase. Tesla can:
- Push forward in court or arbitration to calculate and collect huge financial penalties (potentially $1 billion+ if willful theft is proven).
- Enforce the permanent injunction with contempt charges, fines, or even jail time if Matthews violates it.
- Challenge Matthews’ new patents that allegedly copy Tesla’s work, asking courts to invalidate them or add Tesla as co-inventor.
- Seek extra damages, lawyer fees, and possibly punitive awards under the federal Defend Trade Secrets Act and California law.
Tesla could also refer evidence to federal prosecutors for possible criminal trade-secret charges (rare but serious). Settlement is always possible, but Tesla’s fiery public response suggests they want full accountability.
This isn’t just corporate drama. It shows why trade secrets matter even when Tesla open-sources some patents, confidential know-how shared in trust must stay protected. For the EV industry, it’s a reminder: steal from your biggest customer, and you risk losing everything.
Tesla showcases Optimus humanoid robot at AWE 2026 in Shanghai
Tesla Cybercab production line is targeting hundreds of vehicles weekly: report
