News
Tesla battery supplier Panasonic to increase battery production at Giga Nevada
Tesla battery supplier Panasonic is accelerating plans to increase battery cell production at Gigafactory Nevada. Increasing battery production at Giga Nevada would likely help Tesla increase its vehicle production capacity and benefit from the Inflation Reduction Act’s (IRA) electric vehicle (EV) tax credits.
An executive from Panasonic shared that Tesla approached the Asian battery supplier about battery supply. Tesla told Panasonic it would buy as many battery cells as Panasonic could make.
Tesla has made similar public statements in the past, emphasizing that its 4680 production lines would not disrupt any cell supply relations with other battery suppliers. Elon Musk and other Tesla executives have always been clear that the company would still buy battery cells from its partners, including LG Energy Solutions, Panasonic, and CATL in China.
In response to Tesla’s statement, Panasonic decided to install an additional production line at Gigafactory Nevada, sources told Nikkei Asia. The executive who shared information on the matter added that Giga Nevada is “already crammed,” explaining why only one battery cell production line is being added.
Potential Impact of Tesla and Panasonic’s Battery Production
The new cell production line is expected to begin operation in a year or two. It’s estimated to increase Tesla Giga Nevada’s annual production capacity by about 10% from 38 GWh to 39 GWh. At 39 GWh, Giga Nevada would produce enough battery cells for Tesla to manufacture between 500,000 to 700,000 Tesla Model 3 vehicles.
Tesla isn’t the only EV automaker investing in battery cell production. The Inflation Reduction Act’s EV credits for domestic cell production have encouraged more automakers and foreign battery suppliers to build battery plants in the United States.
In the Q4 2022 earnings call, Elon Musk commented that the IRA’s credits for domestic manufacturing could make significant contributions in the future.
“Long term, we expect these–the value of these credits to be very significant,” said Musk. “And in the case of Panasonic domestic manufacturing, we’re splitting the value of the credits. So it will–the value of credits this year will not be gigantic, but I think it could be gigantic.
Zack Kirkhorn shared a bit more about Tesla’s estimates regarding the IRA’s credits related to battery composition.
“So different products, we think, will get different amounts of credit. The regulations here are still in flux and there continues to be updates, so this is just our best understanding at the moment. But we think on the order of $150 million to $250 million per quarter this year and growing over the course of the year as our volumes grow,” Kirkhorn said.
Kirkhorn concluded that the IRA’s credits could eventually impact the affordability of some electric vehicles.
Panasonic’s Future in the United States
Besides Tesla, Panasonic might start working with Stellantis and BMW on new battery plants in North America. The Japanese battery supplier already selected Kansas as the site for a 4680 plant.
“We were concentrating on Kansas and developing the new [4680] battery, but the IRA turned the tide. Tesla started saying to prioritize batteries that we can quickly increase in quantity,” said the Panasonic executive.
Panasonic shifted its plans for the Kansas facility. It will produce 2170 battery cells in Kansas as well, along with 4680 cells. Sources state that the Asian battery supplier will focus on making 2170 cells in Kansas because they are “a few months faster to supply.”
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Elon Musk
Elon Musk to attend 2026 World Economic Forum at Davos
The Tesla CEO was confirmed as a last-minute speaker for a session with BlackRock CEO Larry Fink.
Elon Musk is poised to attend the 2026 World Economic Forum in Davos. The Tesla CEO was confirmed as a last-minute speaker for a session with BlackRock CEO Larry Fink, signaling a thaw in Musk’s long-strained relationship with the event.
A late addition
Organizers of the World Economic Forum confirmed that Elon Musk was added shortly before the event to a Thursday afternoon session, where he was scheduled to speak with Fink, as noted in a Bloomberg News report. Musk’s upcoming appearance marks Musk’s first participation in the forum, which annually draws political leaders, business executives, and global media to Davos, Switzerland.
Musk’s attendance represents a departure from his past stance toward the event. He had been invited in prior years but declined to attend, including in 2024. His upcoming appearance followed remarks from his political ally, Donald Trump, who addressed the forum earlier in the week with a wide-ranging speech.
A previously strained relationship
Musk had frequently criticized the World Economic Forum in the past, describing it as elitist and questioning its influence. In earlier posts, he characterized the gathering as “boring” and accused it of functioning like an unelected global authority. Those remarks contributed to a long-running distance between Musk and WEF organizers.
The forum previously said Musk had not been invited since 2015, though that position has since shifted. Organizers indicated last year that Musk was welcome amid heightened interest in his political and business activities, including his involvement in the Trump administration’s Department of Government Efficiency (DOGE). Musk later stepped away from that role.
Despite his friction with the World Economic Forum, Musk has remained central to several global events, from SpaceX’s provision of satellite internet services in geopolitically sensitive regions through Starlink to the growing use of xAI’s Grok in U.S. government applications.
News
Tesla states Giga Berlin workforce is stable, rejects media report
As per the electric vehicle maker, production and employment levels at the facility remain stable.
Tesla Germany has denied recent reports alleging that it has significantly reduced staffing at Gigafactory Berlin. As per the electric vehicle maker, production and employment levels at the facility remain stable.
Tesla denies Giga Berlin job cuts report
On Wednesday, German publication Handelsblatt reported that Tesla’s workforce in Gigafactory Berlin had been reduced by about 1,700 since 2024, a 14% drop. The publication cited internal documents as its source for its report.
In a statement to Reuters, Tesla Germany stated that there has been no significant reduction in permanent staff at its Gigafactory in Grünheide compared with 2024, and that there are no plans to curb production or cut jobs at the facility.
“Compared to 2024, there has been no significant reduction in the number of permanent staff. Nor are there any such plans. Compared to 2024, there has been no significant reduction in the number of permanent staff. Nor are there any such plans,” Tesla noted in an emailed statement.
Tesla Germany also noted that it’s “completely normal” for a facility like Giga Berlin to see fluctuations in its headcount.
A likely explanation
There might be a pretty good reason why Giga Berlin reduced its headcount in 2024. As highlighted by industry watcher Alex Voigt, in April of that year, Elon Musk reduced Tesla’s global workforce by more than 10% as part of an effort to lower costs and improve productivity. At the time, several notable executives departed the company, and the Supercharger team was culled.
As with Tesla’s other factories worldwide, Giga Berlin adjusted staffing during that period as well. This could suggest that a substantial number of the 1,700 employees reported by Handelsblatt were likely part of the workers who were let go by Elon Musk during Tesla’s last major workforce reduction.
In contrast to claims of contraction, Tesla has repeatedly signaled plans to expand production capacity in Germany. Giga Berlin factory manager André Thierig has stated on several occasions that the site is expected to increase output in 2026, reinforcing the idea that the facility’s long-term trajectory remains growth-oriented.
Elon Musk got a brash response from Ryanair CEO Michael O’Leary, who said in a press conference on Wednesday afternoon that the Tesla frontman’s criticism of the airline not equipping Starlink has increased bookings for the next few months.
The two have had a continuing feud over the past several weeks after Musk criticized the airline for not using Starlink for its flights, which would enable fast, free, and reliable Wi-Fi on its aircraft.
Tesla CEO Elon Musk trolls budget airline after it refuses Starlink on its planes
Musk said earlier this week that he was entertaining the idea of purchasing Ryanair and putting someone named Ryan in charge, which would oust O’Leary from his position.
However, the barbs continued today, as O’Leary held a press conference, aiming to dispel any beliefs about Starlink and its use case for Ryanair flights, which are typically short in length.
O’Leary said in the press conference today:
“The Starlink people believe that 90% of our passengers would happily pay for wifi access. Our experience tells us less than 10% would pay; He (Elon) called me a retar*ed twat. He would have to join the back of a very, very long queue of people that already think I’m a retar*ed twat, including my four teenage children.”
He then went on to say that, due to Musk’s publicity, bookings for Ryanair flights have increased over the past few days, up 2 to 3 percent:
“But we do want to thank him for the wonderful boost in publicity. Our bookings are up 2-3% in the last few days. So thank you to Mr. Musk, but he’s wrong on the fuel drag. Non-European citizens cannot own a majority of European airlines, but if he wants to invest in Ryanair, we think it would be a very good investment.”
O’Leary didn’t end there, as he called Musk’s social media platform X a “cesspit,” and said he has no concern over becoming a member of it. However, Ryanair has been very active on X for several years, gaining notoriety for being comical and lighthearted.
🚨 Ryanair CEO’s comments on X and Starlink today at the planned presser.
Strange comments here, it just feels like it’s time to end all this crap https://t.co/NYeG95bM82
— TESLARATI (@Teslarati) January 21, 2026
The public spat between the two has definitely benefited Ryanair, and many are calling for it to end, especially those who support Musk, as they see it as a distraction.
Nevertheless, it is likely going to end with no real movement either way, and is more than likely just a bit of hilarity between the two parties that will end in the coming days.
Elon Musk to attend 2026 World Economic Forum at Davos
Tesla states Giga Berlin workforce is stable, rejects media report
