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Tesla’s years of battery tech investments are becoming a buffer against nickel’s rising costs

Credit: Tesla Inc.

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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. 

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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. 

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“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.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Select Tesla Model S/X to receive free battery seal upgrade for better flood resistance

The battery seal upgrade should improve the Model S and Model X’s performance and reliability in floods.

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Credit: Tesla Asia/Weibo

A number of Tesla owners have reported that their Model S and Model X vehicles are in line to receive upgraded parts for their high-voltage battery seal system. A service bulletin for select Model S and Model X vehicles has also been posted on the company’s service website. 

Based on screenshots that have been shared online, the battery seal upgrade should improve the Model S and Model X’s performance and reliability in floods.

Tesla’s Proactive Upgrade

As could be seen in social media posts from the electric vehicle community, Tesla seems to be sending notifications only to select Model S and Model X owners. The notification indicates that their vehicles are up for a free upgrade, which should improve the vehicles’ resistance to floods. Tesla, however, still cautioned that during actual flooding events, it is still best to keep vehicles out of the water.

Following is Tesla’s message to select Model S and Model X owners: “IMPORTANT NOTICE: Your vehicle is in the queue to receive our latest upgraded parts for the High-voltage (HV) battery seal system – at no cost to you. This enhancement is designed to optimize seal integrity over time and improve the performance and reliability of our battery in incidents of high severity flooding.

“In the event of threatened or actual flooding, we recommend that you move your vehicle to high ground (if safe to do so) and avoid exposure to submersion. This guidance applies to all electric vehicles… At this time, no action is needed from you. Once the parts are available at your local service center you will receive a notification in your Tesla mobile app to schedule service for this upgrade.

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A Service Bulletin

Members of the Tesla Motors Club have shared a service bulletin that seemed to be related to the proactive initiative. As per the document, which was dated May 5, 2025, Tesla intends to replace flood port plungers for 2021-2022 Model S and Model X vehicles. The replacement flood port plungers are more robust against external water ingress due to submersion during flooding. 

Following is Tesla’s section in its service bulletin about the initiative: “On certain Model S and Model X vehicles built between approximately January 2021 and September 22, 2022, the High Voltage (HV) battery ports’ plungers intended for internal water leak egress (also known as flood ports) can be replaced with plungers that are more robust against external ingress due to submersion during flooding or other similar high-severity abuse instances.”

The replacement of the flood port plungers cannot be performed by the Mobile Service team. Thus, owners of select Model S and Model X vehicles must wait for a notification from the electric vehicle maker once the upgraded parts are available in their local service center.

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I took a Tesla Model Y weekend-long Demo Drive – Here’s what I learned

I had a weekend with the new Tesla Model Y, and it truly solidified that EVs are the future, if we didn’t know that already.

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Tesla offered me a weekend-long Demo Drive in the new Model Y, a new program the company is offering to people as a way to taste what it is like to own an EV. For me, it was a great look into owning an EV while renting a townhouse without charging infrastructure, but it gave me a lot more insight as well.

A Sales Advisor at a local showroom texted me several weeks back to see if I would want to take the new Model Y from the showroom to my house for a weekend. I immediately said yes, scheduled a weekend when family and friends would be nearby to experience things like Full Self-Driving, and booked it.

I picked it up on Saturday at 6 p.m. as the showroom closed, and I was on my way back home within ten minutes.

First Things First

My first order of business was getting some Full Self-Driving demos in, taking my Fiancè for a hands-free — but supervised — journey first. It was not her first time experiencing FSD, as we had taken a Demo Drive a few months back and experienced Hardware 3 and the past iteration of the Model Y.

However, we only used FSD for about ten minutes while checking out a Model Y to buy back in February.

The next morning, we picked my parents up for breakfast and took them on their first-ever FSD experience. They live in a rural part of my hometown in Southern Pennsylvania, where there are no lines on the road, potholes everywhere, deer constantly crossing the road, and sharp turns that can be dangerous during the daytime, as you cannot see oncoming headlights.

It was really something to see how my Dad changed his belief on FSD in the matter of just a few minutes. The night before, I took my Mom and Step Dad on a drive, and they felt the same way. My Dad is just more vocal about his skepticism, so I was happy to hear the reversal of his perspective.

Living without Charging and How It Changed My Mindset

One of the biggest things that kept me from buying the Model Y we looked at in February was the lack of charging in my neighborhood. I do not get to park directly in front of my front door, and my neighborhood is still considering some minor infrastructure for residents.

With the Long Range All-Wheel-Drive version of the new Model Y, Tesla boasts a range of 327 miles. We picked it up from the Showroom at 98 percent state-of-charge.

We ran our usual errands, went out to dinner, drove around for leisure to enjoy the car, and after all that, we still returned the car with 40 percent left. This truly eliminated any concerns I would have about charging at home, at least in the near term.

Realistically, I would like to have charging at home. The experience made me realize I would probably be driving to a Supercharger once a week to get range, which is about as frequent as I visit a gas pump now. It would not be a tremendous change, and it made me realize that when I do eventually make the jump, if I am still living in our townhome that we rent, I would get through it without any real issues.

Take my words as a bit of advice: If you’re overly concerned about not having charging at your apartment or home, don’t stress too much about it.

The Good and Bad with Full Self-Driving

Overall, our Full Self-Driving experience was incredibly valuable. My plan was to drive the car manually most of the time, but I truly only did that for roughly 5 percent of the miles we traveled together.

I planned for a big stress test on Sunday evening, and that’s what we did. We had to run out and get some things for a wedding we’re attending this coming weekend, and it required us to travel all over York from the East end to the West end, much of which was spent traveling on the Lincoln Highway. In West York, this stretch of highway is incredibly dysfunctional, busy, and is one of the drives I rue the most in the area.

Full Self-Driving made it very easy, as I just set the destination on several occasions and let the car do all the work.

Our first drive took us from our house to our local Target. It did everything flawlessly. I took over once we got into the parking lot just to find a parking space on my own:

I didn’t record the trip from Target to the Burlington Coat Factory, just a mile away, but I did record the next leg of the trip, which was from Burlington in East York to Burlington in West York. This was when I had my first complaint with FSD, and it dealt with the operation in parking lots.

You’ll see at the beginning of this video that there was an instance where the car waited for one cross-traffic warning to stop before proceeding, but ignored another cross-traffic warning from the other direction. The car pulled out on this person, you’ll see me wave to apologize, then I take control of the car, as it was too close to that other car for my liking. This was the only issue we experienced on this drive:

I found that parking lots were a weak point of FSD. It is not that I did not feel confident in its abilities to make it through these lots safely, but it reminded me a lot of what I think a 16-year-old who just got their license would drive through a busy parking area: hesitant, not confident, tentative.

Several of our X followers said the same thing:

Leaving the West York Burlington and heading to a Walgreens to pick up some pictures we had printed was the next leg of our journey. This was where we got to test a difficult off-ramp on I-83 south and Autopark in the Walgreens parking lot.

The off-ramp for the Market Street exit and the on-ramp use the same lane, so merging traffic can be a bit of a nightmare for those trying to get off of the highway, which is what we were trying to do. FSD managed it cleanly, as several cars were merging onto I-83, the car found a soft spot in the traffic and got off without any issue. This impressed me because I know it can be stressful at times, especially during rush hour.

Autopark worked well and backed into a spot with no issues:

Our final trip with FSD was from our home to the showroom. This would be our longest single-trip using FSD, and it was the most impressive yet.

The first thing it was tasked with was merging onto the highway with a very short lane to do so. FSD recognized this, saw an oncoming car that did not get over into the passing lane to make space (despite it having the room to do so as a courtesy), and sped up to take the slot it was given. It overtook slower cars, stayed in the right lane near on-ramps to make merging for others easier, and got us through the Harrisburg split with no issues.

As we turned onto the Carlisle Pike, the right lane was closed about a quarter-mile after we merged onto it. We had a vehicle beside us that did not want to let us over, so FSD waited, allowed the car to pass, and quickly took the three-car-length gap, safely getting on. This was a funny one because I noticed my Fiancè’s hand grab the handle on her door as a reactionary response.

She realized after it was unnecessary, and it did a better job than many people we know would have done:

This finished our experience with the Model Y for the weekend, and it was hard to say goodbye.

Conclusion

It seems that a trade-in will be happening in the coming months. My biggest reservation was residential charging, and I learned it really was not something I needed to be overly concerned about.

Full Self-Driving was truly the big thing that sold me on this car. The new Model Y is obviously a great vehicle to begin with, but FSD was the number one thing that I will miss because it made driving such a breeze.

More novelty things I will miss are being able to watch YouTube while I wait in the car, and pranking people with the Fart on Contact/Sit Happens feature, something that gave us all a good laugh.

It was a great weekend with the new Model Y! In the coming months, I hope to get my hands on another vehicle for a weekend.

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Apparent Tesla Cybercab castings are piling up in Giga Texas

The castings are quite interesting since they are different from the components used in the Model Y and Cybertruck.

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Credit: @JoeTegtmeyer/X

Tesla has stated that it will start the volume production of its Cybercab robotaxi next year, but it appears that the company is already busy piling up components for the upcoming vehicle. This was, at least, hinted at in recent aerial images taken from the Giga Texas complex.

Apparent Cybercab Castings

During a recent drone flyover, longtime Giga Texas watcher Joe Tegtmeyer spotted a growing number of castings being piled up around the factory complex. The castings are quite interesting since they are different from the components used in the Model Y and Cybertruck, which are both produced in the facility today. This has led to speculations that the mysterious castings are for the Cybercab, which is expected to reach volume production in 2026

Based on the images that were recently taken at the Giga Texas complex, it appears that Tesla is busy testing and likely validating the castings for its compact, two-seat robotaxi. Elon Musk has stated that the Cybercab will be a very high volume vehicle, after all, so Tesla has to make sure that the vehicle’s components are fully refined by the time it enters full production.

One Cybercab Every Five Seconds

During Tesla’s Q1 2025 All-Hands meeting, CEO Elon Musk shared some details about the Cybercab’s production line. As per Musk, the Cybercab’s line would resemble a high-speed consumer electronics line instead of a regular automotive production line. This, together with the company’s “Unboxed” process, should pave the way for the Cybercab to hit a production rate of about 2 million vehicles per year.

“If you’ve seen the design of the Cybercab line, it doesn’t look like a normal car manufacturing line. It looks like a really high-speed consumer electronics line. In fact, the line will move so fast that that actually people can’t even get close to it. I think it’ll be able to produce a car ultimately in less than 5 seconds,” Musk stated.

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