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Electric car battery production causes less CO2 emissions than once thought: study
The classic anti-Tesla argument alleging that CO2 emissions from battery production negates the positive environmental impact of electric vehicles may have been disproven for good. This comes after the IVL Swedish Environmental Research Institute, one of the firms responsible for the original anti-EV claim, completed a new study that showed a much different result.
The IVL conducted a study in 2017 which revealed that the emissions from the production of lithium-ion batteries was responsible for a large amount of CO2, making the purchase of an electric car practically pointless in an environmental sense. The 2017 study claimed that the production of EV batteries emits around 150 and 200 kg of CO2 per kWh. However, a new study, summarized in a recent press release from IVL, showed the amount of CO2 emissions from battery production has been reduced to between 61 and 106 kg of CO2 equivalent per kWh.
Erik Emilsson, a researcher for the IVL stated that “emissions are lower now is mainly due to the fact that battery factories have been scaled up and are running at full capacity, which makes them more efficient per unit produced. We have also taken into account the possibility of using electricity that is virtually fossil-free in several of the production stages.”
The IVL believes this reduced number can get even lower with the development of more sustainable techniques during the different states of the electric car life cycle. For example, some Tesla Superchargers and other EV chargers are still powered by a CO2-emitting resource. Tesla CEO Elon Musk stated in October 2019 that the company’s objective is to move away from this “as fast as possible” by adding solar panels to Supercharger stations.
Also adding Tesla Solar to our Supercharger stations as fast as possible. Goal is 24/7 clean power with no blackouts.
— Elon Musk (@elonmusk) October 10, 2019
Musk is not the only automotive executive looking to move away from coal-powered electric vehicle charging stations. Volkswagen Auto Group CEO Herbert Diess, who thinks highly of Musk’s vision of a sustainable future, has also stated that it is imperative for manufacturers of charging stations to make their products CO2-free.
“Coal and CO2-free electricity is a must for electric cars,” he said at a Volkswagen event in March 2019. We call on industry, politics, and society to jointly set all levers in motion to help electric-mobility achieve a breakthrough.”
The development of cleaner manufacturing doesn’t stop at the factory, however. Mining the materials for vehicle batteries is also a contributor to the negative environmental impact of electric cars. Mining can have a significant environmental and social impact. Batteries contain metals such as lithium, cobalt, nickel, and manganese.
More information is needed on the environmental impact of metal supply chains as well as better traceability processes if we are to ensure sustainable production across the entire chain,” Emilsson said. The development of new batteries is moving away from the most damaging metals, especially cobalt, an element that will be replaced in batteries by utilizing more nickel. Among those leading the pack in these efforts is Tesla as well.
The advancement in the production of batteries and electric vehicles as a whole assists in the fight against global climate issues. Technology continues to improve and the use of environmentally detrimental materials will likely be phased out as knowledge of battery systems increases. Many forget that the electric car industry is very new, especially compared to its petrol-based counterpart that has been around since the late 1800s.
Electric cars will only continue to advance in every stage, from mining to production, to driving, to recycling. The news from IVL that emissions during the production of these sustainable vehicles have decreased significantly shows the industry continues to grow and do what it was created to accomplish: save our planet from environmental catastrophe from the use of gas-powered vehicles that contribute to the steady increase in CO2 into our atmosphere.
The results of the IVL’s recent study could be accessed below.
IVL – Lithium-Ion Vehicle Battery Production by Simon Alvarez on Scribd
Elon Musk
Tesla CEO Elon Musk drops massive bomb about Cybercab
“And there is so much to this car that is not obvious on the surface,” Musk said.
Tesla CEO Elon Musk dropped a massive bomb about the Cybercab, which is the company’s fully autonomous ride-hailing vehicle that will enter production later this year.
The Cybercab was unveiled back in October 2024 at the company’s “We, Robot” event in Los Angeles, and is among the major catalysts for the company’s growth in the coming years. It is expected to push Tesla into a major growth phase, especially as the automaker is transitioning into more of an AI and Robotics company than anything else.
The Cybercab will enable completely autonomous ride-hailing for Tesla, and although its other vehicles will also be capable of this technology, the Cybercab is slightly different. It will have no steering wheel or pedals, and will allow two occupants to travel from Point A to Point B with zero responsibilities within the car.
Tesla shares epic 2025 recap video, confirms start of Cybercab production
Details on the Cybercab are pretty face value at this point: we know Tesla is enabling 1-2 passengers to ride in it at a time, and this strategy was based on statistics that show most ride-hailing trips have no more than two occupants. It will also have in-vehicle entertainment options accessible from the center touchscreen.
It will also have wireless charging capabilities, which were displayed at “We, Robot,” and there could be more features that will be highly beneficial to riders, offering a full-fledged autonomous experience.
Musk dropped a big hint that there is much more to the Cybercab than what we know, as a post on X said that “there is so much to this car that is not obvious on the surface.”
And there is so much to this car that is not obvious on the surface
— Elon Musk (@elonmusk) January 2, 2026
As the Cybercab is expected to enter production later this year, Tesla is surely going to include a handful of things they have not yet revealed to the public.
Musk seems to be indicating that some of the features will make it even more groundbreaking, and the idea is to enable a truly autonomous experience from start to finish for riders. Everything from climate control to emergency systems, and more, should be included with the car.
It seems more likely than not that Tesla will make the Cybercab its smartest vehicle so far, as if its current lineup is not already extremely intelligent, user-friendly, and intuitive.
Investor's Corner
Tesla Q4 delivery numbers are better than they initially look: analyst
The Deepwater Asset Management Managing Partner shared his thoughts in a post on his website.
Longtime Tesla analyst and Deepwater Asset Management Managing Partner Gene Munster has shared his insights on Tesla’s Q4 2025 deliveries. As per the analyst, Tesla’s numbers are actually better than they first appear.
Munster shared his thoughts in a post on his website.
Normalized December Deliveries
Munster noted that Tesla delivered 418k vehicles in the fourth quarter of 2025, slightly below Street expectations of 420k but above the whisper number of 415k. Tesla’s reported 16% year-over-year decline, compared to +7% in September, is largely distorted by the timing of the tax credit expiration, which pulled forward demand.
“Taking a step back, we believe September deliveries pulled forward approximately 55k units that would have otherwise occurred in December or March. For simplicity, we assume the entire pull-forward impacted the December quarter. Under this assumption, September growth would have been down ~5% absent the 55k pull-forward, a Deepwater estimate tied to the credit’s expiration.
“For December deliveries to have declined ~5% year over year would imply total deliveries of roughly 470k. Subtracting the 55k units pulled into September results in an implied December delivery figure of approximately 415k. The reported 418k suggests that, when normalizing for the tax credit timing, quarter-over-quarter growth has been consistently down ~5%. Importantly, this ~5% decline represents an improvement from the ~13% declines seen in both the March and June 2025 quarters.“
Tesla’s United States market share
Munster also estimated that Q4 as a whole might very well show a notable improvement in Tesla’s market share in the United States.
“Over the past couple of years, based on data from Cox Automotive, Tesla has been losing U.S. EV market share, declining to just under 50%. Based on data for October and November, Cox estimates that total U.S. EV sales were down approximately 35%, compared to Tesla’s just reported down 16% for the full quarter. For the first two months of the quarter, Cox reported Tesla market share of roughly a 65% share, up from under 50% in the September quarter.
“While this data excludes December, the quarter as a whole is likely to show a material improvement in Tesla’s U.S. EV market share.“
Elon Musk
Tesla analyst breaks down delivery report: ‘A step in the right direction’
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026,” Ives wrote.
Tesla analyst Dan Ives of Wedbush released a new note on Friday morning just after the company released production and delivery figures for Q4 and the full year of 2025, stating that the numbers, while slightly underwhelming, are “better than feared” and as “a step in the right direction.”
Tesla reported production of 434,358 and deliveries of 418,227 for the fourth quarter, while 1,654,667 vehicles were produced and 1,636,129 cars were delivered for the full year.
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Interestingly, the company posted its own consensus figures that were compiled from various firms on its website a few days ago, where expectations were set at 1,640,752 cars for the year. Tesla fell about 4,000 units short of that. One of the areas where Tesla excelled was energy deployments, which totaled 46.7 GWh for the year.
🚨 Wedbush’s Dan Ives has released a new note on Tesla $TSLA:
“Tesla announced its FY4Q25 delivery numbers this morning coming in at 418.2k vehicles slightly below the company’s consensus delivery estimate of 422.9k but much better than the whisper numbers of ~410k as the…
— TESLARATI (@Teslarati) January 2, 2026
In terms of vehicle deliveries, Ives writes that Tesla certainly has some things to work through if it wants to return to growth in that aspect, especially with the loss of the $7,500 tax credit in the U.S. and “continuous headwinds” for the company in Europe.
However, Ives also believes that, given the delivery numbers, which were on par with expectations, Tesla is positioned well for a strong 2026, especially with its AI focus, Robotaxi and Cybercab development, and energy:
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026. We look forward to hearing more at the company’s 4Q25 call on January 28th. AI Valuation – The Focus Throughout 2026. We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
It’s no secret that for the past several years, Tesla’s vehicle delivery numbers have been the main focus of investors and analysts have looked at them as an indicator of company health to a certain extent. The problem with that narrative in 2025 and 2026 is that Tesla is now focusing more on the deployment of Full Self-Driving, its Optimus project, AI development, and Cybercab.
While vehicle deliveries still hold importance, it is more crucial to note that Tesla’s overall environment as a business relies on much more than just how many cars are purchased. That metric, to a certain extent, is fading in importance in the grand scheme of things, but it will never totally disappear.
Ives and Wedbush maintained their $600 price target and an ‘Outperform’ rating on the stock.
Tesla CEO Elon Musk drops massive bomb about Cybercab
Tesla Q4 delivery numbers are better than they initially look: analyst
