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Tesla battery supplier Panasonic to increase battery production at Giga Nevada

Credit: Tesla Inc.

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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. 

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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. 

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“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.

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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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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla grabs massive Las Vegas warehouse for interesting Cybercab project

Tesla quietly filed plans to build the Cybercab car wash, and on May 12, the company submitted a permit to begin renovating the “Tesla Center Cybercab Phase 2 Car Wash,” documents show.

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Credit: TechOperator | X

Tesla is beginning to construct what will be an incredibly unique project, as it is now building a 36,000-square-foot car wash just for the Cybercab in Clark County, Nevada, near Las Vegas.

Tesla quietly filed plans to build the Cybercab car wash, and on May 12, the company submitted a permit to begin renovating the “Tesla Center Cybercab Phase 2 Car Wash,” documents show.

This is not just some ordinary car wash. Instead, it’s a dedicated, high-tech maintenance hub built specifically for Tesla’s ride-hailing vehicle and the many units that will be in the fleet.

According to the permit documents, which were first spotted by MarcoRP, a Supercharger observer on X, the work involves upgrading and updating the interior and exterior of an existing 36,000-square-foot facility. Crews will construct a full car-wash enclosure, relocate tire-service equipment, and install new power raceways.

Every camera on a Tesla Cybercab must stay clean, and without a human driver to perform manual maintenance on the vehicle, this Cybercab-specific car wash will be crucial in keeping the fleet operational, safe, and effective.

Tesla has spent years perfecting unsupervised FSD, and the Cybercab – unveiled last year as a driverless, two-seater purpose-built for ride-hailing – is the physical embodiment of that vision. Industry skeptics have long questioned how a massive Robotaxi network could scale without drivers handling basic upkeep.

Tesla just answered them with a permit filing. Sources close to the project suggest this could be the first of several such hubs, with whispers of similar plans already surfacing in Texas.

A purpose-built Robotaxi wash station means fleets can cycle vehicles through cleaning, charging, and minor servicing at lightning speed with almost no human intervention. Optimus robots could eventually handle the physical work, turning the entire operation into a lights-out, 24/7 machine.

Las Vegas, with its endless tourist traffic and wide-open roads, is the perfect proving ground. Imagine stepping out of a gleaming Cybercab after a night on the Strip, knowing the same vehicle will be sparkling clean and ready for the next rider within minutes.

California hits Tesla Cybercab and Robotaxi driverless cars with new law

Critics who claimed Robotaxis would get filthy and unreliable now look shortsighted. However, it will be interesting to see how many of these types of facilities the company establishes, especially as it plans for the Robotaxi fleet to be available everywhere.

If the permit moves forward as expected, Las Vegas could witness the first large-scale, fully autonomous taxi operation complete with its own cleaning infrastructure. As soon as Tesla solves wireless charging, we’re looking at a very capable and potentially fully autonomous ride-sharing business from A to Z.

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Tesla puts Giga Berlin in Plaid Mode with new massive investment

The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.

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Credit: Tesla

Tesla is pushing forward with significant upgrades at its Gigafactory Berlin-Brandenburg in Grünheide, Germany, signaling renewed confidence in its European operations despite past market challenges.

The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.

In April, plant manager André Thierig announced a 20 percent increase in Model Y production starting in July, following a record Q1 output of more than 61,000 vehicles. To support the ramp-up, Tesla plans to hire approximately 1,000 new employees beginning in May and convert 500 temporary workers to permanent positions.

The move is expected to lift weekly production significantly, addressing rebounding demand in Europe after a challenging 2025.

The expansion builds on earlier progress. In 2025, Tesla secured partial approvals to add roughly 2 million square feet of factory space, raising potential annual vehicle capacity from around 500,000 toward 800,000 units, with longer-term ambitions approaching one million vehicles per year. Logistical improvements, new infrastructure, and battery-related facilities are already underway on company-owned land.

Battery production is the latest major focus. On May 12, Thierig revealed an additional $250 million investment in the on-site cell factory. This more than doubles the planned 4680 battery cell capacity to 18 gigawatt-hours annually—up from the 8 GWh target set in December 2025—while creating over 1,500 new battery-related jobs.

Total cell investments at the site now exceed previous figures, bringing the factory closer to full vertical integration: cells, packs, and vehicles produced under one roof. Tesla describes this as unique in Europe and a step toward stronger supply chain resilience.

The plans come amid regulatory and community hurdles. Earlier expansion proposals faced protests over environmental concerns and water usage, leading to phased approvals beginning in 2024. Tesla has navigated these by emphasizing sustainable practices and economic benefits, including thousands of local jobs in Brandenburg.

With nearly 12,000 employees already on site and production steadily climbing, Gigafactory Berlin is poised for growth. The combined vehicle and battery expansions position the plant as a key hub for Tesla’s European ambitions, potentially making it one of the continent’s largest manufacturing complexes if local support continues.

As EV demand recovers, these investments underscore Tesla’s commitment to scaling efficiently in Germany while addressing regional supply chain needs.

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Honda gives up on all-EV future: ‘Not realistic’

Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.

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Ivan Radic, CC BY 2.0 , via Wikimedia Commons

Honda has given up on a previous plan to completely changeover to EVs by 2040, a new report states. The company’s CEO, Toshihiro Mibe, said that the idea is “not realistic.”

Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.

Mibe said (via Motor1):

“Because of the uncertainty in the business environment and also the customer demand, is changing beyond our expectation and, therefore, we have judged that it’ll be difficult to achieve. That ratio [100-percent electric in 2040] is not realistic as of now. We have withdrawn this target.”

Instead of going all-electric, Honda still wants to oblige by its hopes to be net carbon neutral by 2050. It will do this by focusing on those popular hybrid powertrains, planning to launch 15 of them by March 2030.

Honda will invest 4.4 trillion yen, or almost $28 billion, to build hybrid powertrains built around four and six-cylinder gas engines.

There are so many companies abandoning their all-electric ambitions or even slowing their roll on building them so quickly. Ford, General Motors, Mercedes, and Nissan have all retreated from aggressive EV targets by either cancelling, delaying, or pausing the development of electric models.

Hyundai’s 2030 targets rely on mixed offerings of electric, hybrid & hydrogen vehicles

Early-decade pledges from multiple brands proved overly ambitious as infrastructure lags, battery costs remain high in some markets, and many buyers prefer hybrids for their convenience and range. Toyota has long championed hybrids, while others have quietly extended internal-combustion timelines.

For Honda—historically known for reliable gasoline engines—this shift leverages its core strengths while buying time to refine electric technology. Whether the hybrid-heavy strategy will protect market share in an increasingly competitive landscape remains to be seen, but one thing is clear: the gas engine is far from dead at Honda, unfortunately.

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