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Tesla partner Panasonic’s US plans hint at possible Model S and X battery update

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Tesla might be looking to expand its array of battery suppliers with the upcoming construction and operation of Gigafactory 3 in China, but its current exclusive battery supplier, Panasonic, is looking to double down on its partnership with the electric car maker nonetheless. In a recent statement to Japanese media, Panasonic announced that it plans to move its Tesla battery production facilities to the United States next year.

Panasonic already manufactures batteries for Tesla’s vehicles in the US in Gigafactory 1, though the cells it produces on the site are the 2170 cells being utilized for the Model 3. Tesla’s two flagship vehicles — the Model S and Model X — are still equipped with custom 18650 cells, which are produced by Panasonic in facilities located in Japan. Based on a report from the Nikkei Asian Review, these are the operations that the Japanese company will be bringing over to a “US-based unit starting next April.”

Considering that Panasonic is already producing 2170 cells for the Model 3 in Gigafactory 1, the company’s move of its Tesla battery production lines to a US-based facility could pave the way for a well-deserved and much-anticipated battery update for the Model S and X. The move, if any, provides Panasonic the opportunity to normalize its battery production for Tesla’s electric cars. It does not seem to be a strategic move for Panasonic, after all, to move its battery production operations to the United States to manufacture 18650 cells that are bound to be upgraded in the near future.

Tesla’s 18650 cells for the Model S and X, while not as energy-dense as the Model 3’s 2170 cells, still hold up well today. A recent range and efficiency test of the Jaguar I-PACE by German network nextmove, for example, showed that the Model X, which is equipped with 18650 cells, still seems to have superior battery tech than the newer electric crossover from the British carmaker. Elon Musk, for his part, lauded the Model 3’s 2170 cells in the third quarter earnings call, stating that the electric car currently stands as the “most energy efficient energy per mile electric vehicle out there.”

Tesla’s 2170 cells are hailed by industry experts as a difference-maker for the Silicon Valley-based company. Detroit veteran Sandy Munro, for one, noted after tearing down and analyzing the Model 3 that the electric car’s 2170 batteries are the best that he has seen to date. The potential of the 2170 cells could be seen in the Model 3 Performance’s recent Track Mode update, which allows the electric car to compete with the automotive industry’s best high-performance sedans on a closed circuit.

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Elon Musk has noted that there is no such thing as a “full refresh” for its vehicles. In a statement on Twitter, Musk pointed out that Tesla’s electric cars are partially upgraded every month “as soon as a new subsystem is ready for production.” With this in mind, there seems to be little doubt that when the production of 2170 cells reaches a point where it is capable of supporting the Model S and X, Tesla will equip the vehicles with the larger, newer cells.

Both the Model S and Model X have defied the odds over the years, competing and even dominating their respective segments despite an abundance of skepticism and Tesla’s lack of experience in the auto industry. Considering that the vehicles are Tesla’s flagships, though, it stands to reason that both electric cars would be equipped with the best that the company has to offer — in terms of batteries, that pertains to the 2170 cells. 

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 hints at ‘Model 2’ & next-gen EV designs

Tesla’s Q1 2025 update confirms new models this year, with production tied to existing factory lines. Could it be time for the Model 2 debut?

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(Credit: Tesla)

During its Q1 2025 earnings call, Tesla executives hinted at the much-rumored “Model 2” and other next-gen EV designs.

Tesla slightly addressed whether or not it will be pushing forward with the debut of new models later this year in its latest earnings call. The company’s product development executive, Lars Moravy, shared some details about Tesla’s design process and the upcoming affordable models.

“We’re still planning to release models this year. As with all launches, we’re working through, like, the last minute issues that pop up. We’re knocking them down one by one. At this point, I would say that the ramp might be a little slower than we had hoped initially…But there’s nothing that’s blocking us from starting production within the next, within the timeline laid out in the opening remarks.

“And I will say it’s important to emphasize that, as we’ve said all along, the full utilization of our factories is the primary goal for these new products. And so the flexibility of what we can do within the form factor and, you know, the design of it is really limited to what we can do on our existing lines rather than building new ones. But we’ve been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles, and that’s why we’re focused on bringing these new models with the, you know, the lowest price, to the market, within the constraints I just highlighted.”

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In January, Tesla’s Chief Financial Officer Vaibhav Taneja teased several new product introductions for this year. There is at least one product that most Tesla supporters and investors are hoping to see: the company’s affordable vehicles, which have been dubbed by the EV community as the “Model 2” or “Model Q.”

Before Tesla’s Robotaxi event last year, many speculated that the company would also unveil its affordable next-gen vehicle. Gene Munster from Deepwater had expected Tesla to release a stripped-down version of the Model 3 as its affordable vehicle during the Robotaxi event. In the end, Tesla unveiled its Robotaxi vehicle and its Robovan design.

It’s been a while since the Robotaxi event, and Tesla has kept mum about its affordable vehicle. Considering its Q1 2025 performance, TSLA investors look forward to catalysts that could boost the stock.

The “Model 2” has been labeled a potential catalyst for Tesla. As such, TSLA investors and supporters have been itching for news about the new affordable vehicle. The main questions surrounding the “Model 2” revolve around its design and price. Based on Moravy’s statement, the “Model 2’s” design will heavily depend on Tesla’s current assembly lines and supply chain structures.

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Tesla owner-investor stands ground after receiving Nazi-themed mail, welcomes new Model Y

The Tesla investor even made it a point to purchase the brightest shade available for her new Model Y.

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Credit: Tesla

A TSLA investor has decided to stand her ground after receiving a threatening, Nazi-themed card at her home.

The Tesla investor even welcomed a new Ultra Red Tesla Model Y to show her support for the company.

Responding with a New Tesla

As per 58-year-old Alexandra Merz, an investment analyst and immigration consultant who immigrated from Germany to the United States, she received mail from a Boston address to her home on April 17. Upon opening the letter, she was greeted by an image of the Tesla logo incorporated with a Nazi salute.

Inside the card was a handwritten message which read, “History has its eyes on you.” Merz promptly reported the message to the FBI. In a comment to the New York Post, she stated that she is now even more motivated to support Elon Musk and his ventures.

“This atrocious behavior motivates me even more to stand up for Tesla, Elon, and DOGE,” Merz noted. “I bought our fifth Tesla last Saturday, a beautiful red Model Y, the best car out there. And it drives itself.”

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An Unfortunate Trend

In previous comments, Merz expressed her disdain for the ongoing attacks against Tesla and Musk. “Tesla is employing more than 140,000 employees worldwide, building the most American cars in the U.S., and building the European Model Ys in Berlin. I often wonder whether these protesters have thought through what they are doing,” she stated.

Elon Musk himself admitted to the disturbing trend during Tesla’s Q1 2025 earnings call, stating that “there’s been some blowback for the time that I’ve been spending in government with the Department of Government Efficiency or DOGE.” The CEO also stated that he would soon be stepping back from DOGE’s everyday operations and focusing more of his time on Tesla.

U.S. President Donald Trump also addressed the ongoing attacks on Teslas in a comment about Musk’s impeding step back from DOGE. As per Trump, people against Musk are taking out their frustrations on Tesla and its owners, which is unfair. He also described the people behind the attacks on Tesla as “sick.”

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Trump’s tariff exemptions for car parts bring mixed relief to automakers  

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(Credit: Gage Skidmore, CC BY-SA 3.0 <, via Wikimedia Commons)

U.S. President Donald Trump is expected to grant tariff exemptions for car parts, offering partial relief to automakers amid intense industry lobbying. Trump’s tariff exemptions aim to ease the burden of trade policies disrupting the auto sector.

The expected tariff exemptions will spare car parts from duties targeting Chinese imports and those on steel and aluminum, per two sources familiar with the matter. Sources called the strategy a “destacking” of tariffs. The 25% tariff on foreign-made cars, already in effect, and a 25% duty on imported car parts, set for May 3, will remain.

The Center for Automotive Research estimated that Trump’s 25% tariffs on automotive imports will inflate automakers’ costs by $108 billion in 2025, threatening profitability and supply chains. Automakers are clambering to comply with Trump’s auto tariffs while maintaining car prices, or at least keeping prices reasonable. However, the tariffs threaten to unravel the auto industry, affecting automakers, parts suppliers, and long-established supply chains.

Tesla has quickly adjusted to Trump’s auto tariffs, suspending plans to ship components from China for its Cybercab and Semi electric trucks to the U.S. Similarly, Ford halted shipments of select vehicles to China, facing retaliatory tariffs as high as 150%, which have severely impacted its export strategy.

The partial exemptions offer a reprieve for automakers reliant on global supply chains, but the persistent 25% tariffs on cars and auto parts continue to challenge cost structures. As U.S. automakers navigate these trade hurdles, the exemptions could stabilize some operations, though rising car prices and supply chain disruptions remain significant concerns for the industry’s outlook in 2025.

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