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Tesla battery partner Panasonic to lean on 2170 and 4680 batteries for profitability

Credit: Tesla/YouTube

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Tesla battery partner Panasonic cut its 2023 outlook by 12.5 percent after it missed earnings expectations. The Japanese company will lean on automotive batteries, including the 2170 and 4680 chemistries, to improve profitability for operations this year.

Panasonic’s Earnings Call on Thursday revealed it struggled with headwinds caused by a weakened global economy and high raw material prices.

Its nine-month net profit attributable to stockholders decreased to 162.9 billion yen ($126,797,287) from 195.6 billion yen ($152,250,150) during the same period a year prior. Operating profit also slid by a considerable margin, 85 percent, which can mostly be attributed to the rise in price for raw materials.

Panasonic will lean on automotive battery supply deals to grow profits, especially with 4680 and 2170 battery cells, which are used in electric vehicles. The 2170 cell has been used in Tesla Model 3 and Model Y vehicles for years, and was an improvement from the 18650 cells used in flagship Model S and Model X vehicles.

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In a presentation during the Earnings Call, Panasonic stated it would “Focus on North America market where we can leverage advantages (high capacity) with established strong business foundation; Achieve profit growth by expanding sales of 2170 cells and commercializing 4680 cells.” It also stated it would leverage renovations of its Wakayama Factory in western Japan to promote the commercialization of 4680 cells.

However, Tesla’s unveiling of the 4680 cell chemistry in 2020 brought on a new, more powerful, and more efficient cell that would be used in future EV applications. Tesla has utilized the 4680 cell in some vehicles, but the company is still ramping up production.

Tesla 4680 battery plant in Giga Nevada to ramp up to 500 GWh long-term: Elon Musk

Panasonic is planning to begin production of the 4680 cell in Q2. “A pilot line, created first in Japan, made it possible to start large-scale prototype production in May,” Panasonic’s energy business CEO Kazuo Tadanobu said at a company investor event last year.

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The cells will eventually be built in the United States as Panasonic plans to invest 600 billion yen ($4,670,250,000) through March 2025 to establish a battery manufacturing plant in Kansas. The plant’s U.S.-based manufacturing is a strategic move that will help automakers qualify for tax credits through the Inflation Reduction Act, which incentivizes the production of battery cells and EVs in North America.

In mid-December, Panasonic signed a supply deal with Lucid Motors to provide EV batteries for its Air lineup.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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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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California hits Tesla Cybercab and Robotaxi driverless cars with new law

California just gave police power to ticket driverless cars, including Tesla’s Cybercab fleet.

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Concept rendering of Tesla Cybercab being cited by CA Highway Patrol (Credit: Grok)

California DMV formally adopted new rules on April 29, 2026 that allow law enforcement to issue “notices of noncompliance”, or in other words, ticket autonomous vehicle companies when their cars commit moving violations. The rules take effect July 1, 2026, officially closes a regulatory gap that previously let driverless cars operate on public roads with nearly no traffic enforcement consequences.

Until now, state traffic law only applied to human “drivers,” which meant that when no person was behind the wheel, police had no mechanism to issue a ticket. Officers were limited to citing driverless vehicles for parking violations only. A well-known example came in September 2025, when a San Bruno officer watched a Waymo robotaxi execute an illegal U-turn and could do nothing but notify the company.

Under the new framework, when an officer observes a violation, the autonomous vehicle company is effectively treated as the driver. Companies must report each incident to the DMV within 72 hours, or 24 hours if a collision is involved. Repeated violations can result in fleet size restrictions, operational suspensions, or full permit revocation. Local officials also gained new authority to geofence driverless vehicles out of active emergency zones within two minutes and require a live emergency response line answered within 30 seconds.

Tesla Cybercab ramps Robotaxi public street testing as vehicle enters mass production queue

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California’s new enforcement rules arrive at a pivotal moment for Tesla. The company is ramping Cybercab production at Giga Texas toward hundreds of units per week, targeting at least 2 million units annually at full capacity, while simultaneously pushing to expand its Robotaxi service to dozens of U.S. cities by end of 2026. Unsupervised FSD for consumer vehicles is currently targeted for Q4 2026, and when it arrives, Tesla’s fleet may not have a human to absorb legal accountability, under the July 1 rules.

Tesla has confirmed plans to expand its Robotaxi service to seven new cities in the first half of 2026, including Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas, with the service already running without safety drivers in Austin. Musk has said he expects robotaxis to cover between a quarter and half of the United States by end of year.

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Tesla Model X shocks everyone by crushing every other used car in America

The Model X is one of Tesla’s flagship models, the other being the Model S. Earlier this year, Tesla confirmed it would discontinue production of both the Model S and Model X to make way for Optimus robot production at the Fremont Factory in Northern California.

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Credit: Tesla Asia | X

The Tesla Model X was the fastest-selling used vehicle in the United States in the first quarter of the year, crushing every other used car in America.

iSeeCars data for the first quarter shows that the Model X was the fastest-selling used car, lasting just 25.6 days on the market on average, two days better than that of the second-place Lexus RX 350h. The Cybertruck, Model Y, and Model S, in seventh, ninth, and thirteenth place, respectively, also made the list.

The Model X is one of Tesla’s flagship models, the other being the Model S. Earlier this year, Tesla confirmed it would discontinue production of both the Model S and Model X to make way for Optimus robot production at the Fremont Factory in Northern California.

Tesla brings closure to flagship ‘sentimental’ models, Musk confirms

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Bringing closure to these two vehicles signaled the end of the road for the cars that have effectively built Tesla’s reputation for luxury and high-end passenger vehicles.

Relying on the sales of its mass market Model Y and Model 3, as well as leaning on the success of future products like the Cybercab, is the angle Tesla has chosen to take.

Teslas are also performing extremely well as a whole on the resale market. iSeeCars data shows that, “while the average price of a 1- to 5-year-old non-Tesla EV fell 10.3% in Q1 2026 year-over-year, the average price of a used Tesla was essentially flat at 0.1% lower across the same period. Traditional gas car prices dropped 2.8% during this same period.”

Additionally, market share for gas cars has dropped nearly 3 percent since the same quarter last year. Tesla has remained level, while the non-Tesla EV market share has increased 30 percent, mostly due to more models available.

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Nevertheless, those non-Tesla EVs have seen their value drop by over 10 percent, while Tesla’s values have remained level.

Executive Analyst Karl Brauer said:

“Used electric vehicles without a Tesla badge have lost more than 10% of their value in the past year. This compares to stable values for Teslas and hybrids, and a modest 2.8% drop for traditional gasoline vehicles.”

Teslas, as well as non-luxury hybrids, are displaying the strongest resistance in the face of faltering demand, the publication says. But the more impressive performance is that of the Model X alone.

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Tesla’s decision to stop production of the Model X may have played some part in the vehicle’s pristine performance in Q1. With the car already placed at a premium price point, used models are already more appealing to consumers. Perhaps second-hand versions were more than enough for those who wanted a Model X, and only a Model X.

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Cybertruck

Tesla Cybertruck’s head-scratching trim sold terribly, recall documents reveal

The head-scratching offering was only available for a few months, and evidently, it did not sell very well, which we all suspected. New recall documents on the vehicle from the National Highway Traffic Safety Administration (NHTSA) now reveal just how poorly it sold.

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Credit: Tesla

After Tesla decided to build a Rear-Wheel-Drive Cybertruck trim back in 2025, which was void of many features and only featured a small discount.

The head-scratching offering was only available for a few months, and evidently, it did not sell very well, which we all suspected. New recall documents on the vehicle from the National Highway Traffic Safety Administration (NHTSA) now reveal just how poorly it sold.

The recall deals with a potentially separating wheel stud and potentially impacts 173 Cybertruck units with the 18-inch steel wheels. The Cybertruck RWD was the only trim level to feature these, and the 173 potentially impacted units represent a portion of the population of pickups. Therefore, it’s not the entire number of RWD Cybertruck sold, but it could show how little interest it gathered.

The NHTSA document states:

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“On affected vehicles, higher severity road perturbations and cornering may strain the stud hole in the wheel rotor, causing cracks to form. If cracking propagates with continued use and strain, the wheel stud could eventually separate from the wheel hub.”

Only 5 percent are expected to be impacted, meaning less than 10 units will have the issue if the NHTSA and Tesla estimates are correct. Nevertheless, the true story here is how terribly the RWD Cybertruck sold.

Tesla ended production and stopped offering the RWD Cybertruck to customers last September. For just $10,000 less than the All-Wheel-Drive trim, Tesla offered the RWD Cybertruck with just one motor, textile seats instead of leather, only 7 speakers instead of 15, no Rear Touchscreen, no Powered Tonneau Cover for the truck bed, and no 120v/240v outlets.

Tesla brings closure to head-scratching Cybertruck trim

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For just $10,000 more, at $79,990, owners could have received all of those premium features, as well as a more capable All-Wheel-Drive powertrain that featured Adaptive Air Suspension. The discount simply was not worth the sacrifices.

Orders were few and far between, and sources told us that when it was offered, sales were extremely tempered because customers could not see the value in this trim level.

Even Tesla’s most loyal supporters thought the offering was kind of a joke, and the $10,000 extra was simply worth it.

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Cybertruck RWD Recall by Joey Klender

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