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Tesla Giga Berlin’s 4680 supply won’t start in Germany, and it was never supposed to

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Tesla’s plans for the initial battery needs and efforts at Giga Berlin were answered in late 2020 by the automaker during the Q3 Earnings Call. While things tend to change on a somewhat regular basis as far as plans for something as large as a vehicle manufacturing plant, Tesla knew that its initial battery fulfillment plans likely wouldn’t come from the planned Giga Berlin 4680 cell production lines. Instead, Tesla will rely on its Kato Road facility in Northern California, where the development and manufacturing of a new, revolutionary electric vehicle battery is taking place. Tesla also plans to utilize strong relationships with its battery cell manufacturers to solve supply concerns during Giga Berlin’s early production dates.

Concerns regarding Tesla’s planned timeline for Giga Berlin have arisen over the past several days, especially after a German media outlet said that CEO Elon Musk was extending the beginning of the German plant’s EV production efforts to January 2022. While the Giga Berlin timeline remains uncertain as far as the exact starting date, those close to the situation, including Brandenburg Economic Minister Jörg Steinbach, told Teslarati yesterday that production should begin in late Summer or early Fall 2021.

EXCLUSIVE: Tesla Giga Berlin isn’t facing a 6-month delay: German Minister

The concerns about Tesla Giga Berlin’s initial production date started to appear around the same time that reports began to surface about Tesla adding the 4680 battery manufacturing unit plans to its application. German regulators take a deliberate and somewhat extended time for large projects, as so many different factors are considered before anything is given ultimate approval. Some indicated that this extensive regulatory process would delay the production efforts altogether. Still, local sources in Germany have clarified that this only prolongs the project altogether and doesn’t have much of an effect on the start of production. The project will just take longer to complete considering Tesla added another element to the Giga Berlin offensive.

As previously mentioned, the addition of the 4680 line to the application likely caused confusion over whether the Tesla Giga Berlin production lines would activate on time. 4680 production at Berlin will not begin before or at the same time as Tesla’s vehicle production at the German plant. However, Tesla’s plans were never to have the Berlin 4680 lines handle the initial vehicle production at the plant. Tesla originally planned for the Kato Road 4680 lines to supply Giga Berlin with cells when they are available.

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Drew Baglino, Tesla’s Senior Vice President of Powertrain and Energy Engineering, said during the Q3 2020 Earnings Call:

“We will incorporate 4680 design solutions into many applications in time across both energy and vehicle, and we can use our pilot production facility in Fremont to support the new factory in Berlin as it ramps.”

Additionally, Tesla’s battery suppliers are being called upon to assist in the initial efforts at Giga Berlin.

Musk announced during the most recent Q1 2021 Earnings Call that Tesla is about 12-18 months away from volume production of 4680 cells. While Tesla may be slightly behind schedule regarding the production of the new 4680 battery, there is no indication that it will delay Giga Berlin’s production altogether. In fact, Musk also acknowledged that its suppliers, who Tesla shares “very strong partnerships” with would be called upon to supply cells “as much as they possibly can.”

Musk said:

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“…It appears as though we’re about 12 — probably not more than 18 months away from volume production of the 4680. Now at the same time, we are actually trying to have our cell supply of partners ramp up their supply as much as possible. So this is not something that is to the exclusion of suppliers. It is in conjunction with suppliers. So we want to be super clear about that. This is not about replacing suppliers. It is about supplementing the suppliers. So…and we have a very strong partnership with CATL, with Panasonic and LG. And we would…our request to our strategic partners for cell supply is, please make us…please supply us with as much as you possibly can. Provided the price is affordable, we will buy everything that they can make.”

This includes CATL, a Chinese battery producer who manufactures LFP cells for the Standard Range+ Model 3 at Giga Shanghai. CATL began the construction of a cell manufacturing facility in Germany in 2019. LG Chem also started the construction of an EV battery cell manufacturing facility in Poland in 2017, which could be used to supplement Tesla’s battery efforts in Germany. These suppliers have both assisted Tesla with cells in the past, and these companies will likely supplement Tesla’s needs at Giga Berlin, as Musk requested during the Q1 2021 Earnings Call.

Tesla has been aware that the 4680 lines in Berlin will not take care of the initial production phases at the factory. Instead, it will rely on suppliers and its Kato Road 4680 lines in the United States to take care of the first months of production at Giga Berlin.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla rolls out most aggressive Model Y lease deal in the US yet

With the promotion in place, customers would be able to take home a Model Y at a very low cost.

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(Credit: Tesla)

Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.

Zero downpayment leases

The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment. 

Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.

Premium freebies included

Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.

A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing. 

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Tesla is looking to phase out China-made parts at US factories: report

Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.

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(Source: Tesla)

Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.

The update was initially reported by The Wall Street Journal.

Accelerating North American sourcing

As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.

The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.

Industry-wide reassessments

Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report. 

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General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration. 

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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

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Credit: Tesla Raj/YouTube

Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.

However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.

Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.

After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.

However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.

Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:

Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.

@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi

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