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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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Tesla Semi factory looks almost complete during Thanksgiving weekend
Based on recent drone videos, the Tesla Semi factory looks practically ready to start operations.
It appears that the Tesla Semi factory near Giga Nevada is already hard at work preparing for the initial production of the Class 8 all-electric truck. This was, at least, hinted at in a recent drone flyover of the facility from a longtime watcher.
The Tesla Semi factory after Thanksgiving
Drone operator and Tesla Semi advocate @HinrichsZane recently shared some footage he captured of the upcoming facility during the Thanksgiving weekend. Based on his video, it appears that Tesla gave its employees in the area the weekend off. One thing is evident from the video, however, and that is the fact that the Tesla Semi factory looks practically ready to start operations.
The Tesla Semi watcher did point out that the electric vehicle maker is still busy bringing in production equipment into the facility itself. Once these are installed, it would not be surprising if initial production of the Tesla Semi begins.
A new Tesla Semi
The upcoming completion of the Tesla Semi factory near Gigafactory Nevada seems all but inevitable in the coming months. What would be especially interesting, however, would be the vehicles that would be produced on the site. During Elon Musk’s presentation at the 2025 Annual Shareholder Meeting, a glimpse of the production Tesla Semi was shown, and it looks quite a bit different than the Class 8 all-electric truck’s classic appearance.
As could be seen in the graphic from the CEO’s presentation, the updated Tesla Semi will feature slim lightbar headlights similar to the new Tesla Model Y, Cybertruck, and the Cybercab. Tesla also teased a number of aerodynamic improvements that increased the truck’s efficiency to 1.7 kWh per mile. Extended camera units, seemingly for FSD, could also be seen in the graphic.
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Tesla scores major hire as Apple scientist moves to Optimus team
Chen, who advanced from individual contributor to technical lead during his time at Apple, noted that he was blown away by Tesla’s efforts and synergy.
Former Apple research scientist Yilun Chen has left the tech giant to join Tesla’s Optimus AI team. Chen, who advanced from individual contributor to technical lead during his time at Apple, noted that he was blown away by Tesla’s efforts and synergy.
Apple veteran closes a major chapter
In a farewell note, Yilun Chen reflected on his tenure at Apple as a period defined by rapid growth and exposure to notable internal projects, some of which remain unreleased. His roles spanned engineering, research, early product incubation, and hands-on prototyping, allowing him to build expertise across both mature and emerging teams.
Chen credited mentors, colleagues, and cross-functional collaborators for shaping his trajectory, calling the experience unforgettable and emphasizing how each team taught him different lessons about scaling technology, guiding product vision, and navigating fast-moving research environments. “Each role has offered me invaluable unique lessons… My deepest gratitude goes to my colleagues, mentors and friends,” he wrote.
Tesla’s Optimus lab secured the hire
Chen said the move to Tesla was driven by the momentum surrounding Optimus, a humanoid robot powered by LLM-driven reasoning and Physical AI. After visiting Tesla’s Optimus lab, he admitted that he was “totally blown away by the scale and sophistication of the Optimus lab and deep dedication of people when I got to visit the office.”
His first week at Tesla, he noted, involved spontaneous deep-tech discussions, a flat team structure, rapid prototyping cycles, and what he called a “crazy ideas with super-fast iterations” culture. Chen emphasized that the team’s ambition, as well as its belief that humanoid robots are now within reach, creates an energy level that feels aimed at changing the world.
-->“You can feel the energy to change the world here,” he wrote in a post on social media.
Elon Musk
Elon Musk gives nod to SpaceX’s massive, previously impossible feat
It was the booster’s 30th flight, a scenario that seemed impossible before SpaceX became a dominant force in spaceflight.
Elon Musk gave a nod to one of SpaceX’s most underrated feats today. Following the successful launch of the Transporter-15 mission, SpaceX seamlessly landed another Falcon 9 booster on a droneship in the middle of the ocean.
It was the booster’s 30th flight, a scenario that seemed impossible before SpaceX became a dominant force in spaceflight.
Elon Musk celebrates a veteran Falcon 9 booster’s feat
SpaceX completed another major milestone for its Smallsat Rideshare program on Friday, successfully launching and deploying 140 spacecraft aboard a Falcon 9 from Vandenberg Space Force Base. The mission, known as Transporter-15, lifted off two days later than planned after a scrub attributed to a ground systems issue, according to SpaceFlight Now. SpaceX confirmed that all payloads designed to separate from the rocket were deployed as planned.
The Falcon 9 used for this flight was booster B1071, one of SpaceX’s most heavily flown rockets. With its 30th mission completed, it becomes the second booster in SpaceX’s fleet to reach that milestone. B1071’s manifest includes five National Reconnaissance Office missions, NASA’s SWOT satellite, and several previous rideshare deployments, among others. Elon Musk celebrated the milestone on X, writing “30 flights of the same rocket!” in his post.
Skeptics once dismissed reusability as unfeasible
While rocket landings are routine for SpaceX today, that was not always the case. Industry veterans previously questioned whether reusable rockets could ever achieve meaningful cost savings or operational reliability, often citing the Space Shuttle’s partial reusability as evidence of failure.
-->In 2016, Orbital ATK’s Ben Goldberg argued during a panel that even if rockets could be reusable, they do not make a lot of sense. He took issue with Elon Musk’s claims at the time, Ars Technica reported, particularly when the SpaceX founder stated that fuel costs account for just a fraction of launch costs.
Goldberg noted that at most, studies showed only a 30% cost reduction for low-Earth orbit missions by using a reusable rocket. “You’re not going to get 100-fold. These numbers aren’t going to change by an order of magnitude. They’re just not. That’s the state of where we are today,” he said.
Former NASA official Dan Dumbacher, who oversaw the Space Launch System, expressed similar doubts in 2014, implying that if NASA couldn’t make full reusability viable, private firms like SpaceX faced steep odds.
Tesla Semi factory looks almost complete during Thanksgiving weekend
Tesla scores major hire as Apple scientist moves to Optimus team
