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Tesla’s cobalt-free battery strategy is making Elon Musk an actual “iron man”

(Credit: Tesla)

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Tesla quietly revealed in its Q1 report that nearly half the vehicles it produced in the first quarter of 2022 were equipped with cobalt-free lithium iron phosphate (LFP) batteries. The news, however, was overshadowed in the news cycle, particularly by Tesla’s $19 billion revenue and CEO Elon Musk’s acquisition of social media platform Twitter. 

LFP batteries are not a new innovation, but it has not been used as much in areas outside China. According to data from Benchmark Mineral Intelligence (BMI), only 3% of electric vehicle batteries in the United States and Canada and 6% in the European Union are iron-based. In China, however, LFP batteries command 44% of the EV market. 

Tesla currently uses LFP batteries in its base vehicles, though Elon Musk has hinted that the EV company will be using more cobalt-free cells in more products. Considering the prolific nature of Tesla and its influence on the market, it would not be surprising if other EV makers also began exploring the option of using LFP batteries for their own cars. 

Amusingly enough, by playing a notable part in LFP battery adoption, it appears that Elon Musk has effectively become an “iron man” of sorts. 

According to a Reuters review of the EV market, Tesla is not alone in its support for LFP batteries. Over a dozen companies are reportedly considering building LFP battery cell plants in the United States and Europe in the next three years. And things will likely only pick up from there. Mujeeb Ijaz, the founder of US battery startup Our Next Energy, noted that LFP has a future in the EV industry. 

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“I think lithium iron phosphate has a new life. It has a clear and long-term advantage for the electric vehicle industry,” he said. 

There was a reason why LFP batteries took this long to gain ground. While LFP cells use cheaper materials, and while they could be consistently charged fully without much degradation, they tend to be larger, heavier, and generally hold less energy than nickel-cobalt-manganese (NCM) cells. Thus, electric cars that use LFP batteries tend to have shorter range. 

Tesla’s decision to use LFP batteries for its base vehicles could be considered a strategic move. Since the company is electively the undisputed leader in the electric vehicle sector, the roughly 150,000 cars it produced last quarter that were equipped with LFP batteries took a number of analysts and specialists by surprise. And similar to other innovations from the company, such as its use of megacasts, it appears that other carmakers will soon be following suit. 

EV startup Fisker, for one, noted that it is planning on using LFP batteries for its lower-range SUVs. CEO Henrik Fisker noted that the company is in discussions with battery suppliers from the United States, Canada, or Mexico. Fisker noted that LFP batteries are perfect for vehicles that are used by city-dwellers. 

“If I never leave Los Angeles, I never leave San Francisco, I never leave London … I think that’s where LFP comes in really well,” he said. 

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Audi CEO Markus Duesmann, in comments that were shared last March, also spoke highly of LFP cells’ potential. “It may well be that we will see LFP in a larger portion of the fleet in the medium term. After the war, a new situation will emerge; we will adapt to that and choose battery technologies and specifications accordingly,” he said. 

Even BMW, which is arguably lagging in the electric vehicle race considering the pace of rivals such as Volkswagen and Daimler, is looking towards LFP batteries. Recent comments from BMW chief procurement officer Joachim Post indicated that the German automaker was analyzing the merits of iron-based cells. “We’re looking at different technologies to minimize the use of resources and also we’re looking at optimizing chemistry,” the executive said. 

*Quotes courtesy of Reuters.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla to make app change for easier communication following Service

“Looking into it. After a service visit is complete, we close the in-app messaging option after 2 hours. We will change this to 24hours or more.”

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tesla service
Credit: Tesla

Tesla will enhance the ability to communicate through the mobile app with Service after work has been done on your car.

One of the biggest weaknesses of Tesla’s automotive division has been Service, as Service Centers are not necessarily plentiful, and wait times, in some regions of the country, are over a month in duration.

Getting in touch with Service after a car has work done to it is also difficult. Calling showrooms in some regions has proven to be difficult to enable direct communication between the customer and the company.

If something is not resolved properly, Tesla keeps the in-app messaging option active for two hours after the service visit is complete.

However, that doesn’t resolve everything, as some issues may arise again more than two hours later. Then the issue of communication presents itself once again.

Tesla is going to extend that time frame to a day or more, according to Raj Jegannathan, Tesla’s AI/IT-Infra, Cybersecurity, IT Apps & Vehicle Service VP.

Tesla has made several changes over the past few years to attempt to improve its Service. Recently, for Collision repair, it started offering a $45-per-day loaner program with free FSD, free tolls, and free Supercharging.

It also recently started sharing local and regional leader contact information so customers have the ability to reach out when they have complaints or disagree with warranty claims, changes in estimates, or initial diagnostics.

Tesla creates clever solution to simplify and improve its Service

However, this is only available at a few showrooms and is currently a pilot program.

These improvements are aimed at resolving communication breakdown, which appears to be a problem that many owners experience.

Tesla is one of the few companies that also operates a fleet of Mobile Repair vehicles, which will perform service at your house or place of business. However, the size of it has gone down by 11 percent year over year.

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Tesla is overhauling its Full Self-Driving subscription for easier access

The subscription model is more accessible to many owners, as it is reasonably priced and offers the option to take a month off from using it if they are interested in saving money.

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Credit: Tesla

Tesla is overhauling its Full Self-Driving subscription and how it markets it to customers after several owners and fans of the company complained about the accessibility of the monthly access to its driver assistance suite.

Tesla Full Self-Driving is the automaker’s semi-autonomous driving suite, which is widely regarded as the most robust and capable on the market today. Owners can purchase the suite outright for $8,000, or they can subscribe to the program for $99 per month, an option it enabled a few years ago.

However, it is not super easy to subscribe to the subscription model, nor is it even recognized on the company’s Online Design Studio. Without some research or prior knowledge, a consumer might not even know they could pay monthly to experience Full Self-Driving.

That is set to change, according to Tesla’s AI/IT Infrastructure, Cybersecurity, IT Apps, and Vehicle Service head Raj Jegannathan, who said the company is planning to change that.

Instead of having customers only have the option to pay outright for the suite, Tesla is now planning to offer the subscription model in its Online Design Studio, making it easier to activate that option:

It will be the second major change Tesla makes to how it sells Full Self-Driving to customers, the first being videos of real-life operation of FSD in the Design Studio. Previously, the site only showed animations of Full Self-Driving’s capabilities.

Tesla added the videos of FSD handling some tricky situations, as well as general operation of the suite, to the Design Studio in recent weeks.

Tesla makes big change to encourage Full Self-Driving purchases

The subscription model is more accessible to many owners, as it is reasonably priced and offers the option to take a month off from using it if they are interested in saving money.

Many cannot justify paying for the suite outright, especially as it adds $8,000 to the cost of their car. After they experience its capabilities for themselves, they might.

Both moves appear to be an effort to increase the take rate of Full Self-Driving, particularly as autonomy takes center stage at Tesla.

With the rollout of Robotaxi and some teased capabilities of the upcoming v14 iteration of Full Self-Driving, Tesla is gearing up to continue advancing its self-driving technology.

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Tesla talks Semi ramp, Optimus, Robotaxi rollout, FSD with Wall Street firm

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Credit: Tesla

Tesla (NASDAQ: TSLA) recently talked about a variety of topics with Wall Street firm Piper Sandler, as the firm released a new note on Friday about their meeting with the company’s Investor Relations team.

According to the note from Piper Sandler, Tesla talked in detail about the Semi program, Optimus, and its potential valuation given its capabilities, the rollout of Robotaxi in Austin, and Full Self-Driving progress in the United States.

Tesla Semi Ramp

The Tesla Semi is set to enter mass production in 2026 at a dedicated factory near the company’s Gigafactory in Reno, Nevada.

The Semi has already been in pilot program testing, as Tesla has partnered with a few companies, like Frito-Lay and PepsiCo., to perform regional logistics. It has been met with excellent reviews from drivers, and it has helped give Tesla a good idea of what to expect when it makes its way to more companies in the coming years.

Piper Sandler said that it is evident Tesla is preparing for a “major ramp,” but it is keeping its expectations low:

“We’ve never expected much from this product, but we’d love to be proven wrong (Tesla is clearly prepping for a major ramp).”

Tesla Optimus and its value internally and externally

Optimus has been working in Tesla factories for some time, but its expectations as a product offering outside of the company internally have major implications.

Its role within Tesla factories, for now, is relatively low, but Optimus is still doing things to assist. By this time next year, Piper Sandler said Optimus should have bigger responsibilities:

“By this time in 2026, Optimus should be moving/staging parts within Tesla’s facilities.”

Outside of Tesla, Optimus could be a major beneficiary for companies as it could be a more affordable way to handle tedious tasks and manual labor. The firm believes that if Optimus can work 18-hour shifts, a cost of $100,000 per unit “would be justified.”

Tesla Robotaxi Expansion

The big focus of the firm with Robotaxi was Tesla’s expansion of the geofence in Austin this week. It was substantial, bringing the Robotaxi’s total service area to around 170 square miles, up from the roughly 90 square miles that rival Waymo is offering in the city.

Tesla Robotaxi geofence expansion enters Plaid Mode and includes a surprise

Tesla has doubled its geofence three times since its launch in late June, and it also revealed that its fleet of vehicles has expanded by 50 percent. It did not give a solid number of how many vehicles are operating in the fleet.

Tesla Full Self-Driving v14 launch

Tesla’s Full Self-Driving suite is set to have a fresh version, v14, rolled out in either September or October, and there are some pretty high expectations for it.

CEO Elon Musk said:

“The FSD release in about 6 weeks will be a dramatic gain with a 10X higher parameter count and many other improvements. It’s going through training & testing now. Once we confirm real-world safety of FSD 14, which we think will be amazing, the car will nag you much less.”

There is also some expectation that v14 could be the public release of what Tesla is running in Austin for Robotaxi. The firm confirmed this in their note by stating it “should enable Tesla owners to use software that is on par with Robotaxis in Austin.”

The only real hold up would be regulator skepticism, but Tesla can alleviate this with strong data.

The firm maintained its ‘Overweight’ rating and the $400 price target it holds on the stock.

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