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Tesla Powerwall production affected by chip shortages, says Elon Musk in SolarCity trial

Credit: teslaenergyofficial/Instagram

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During Elon Musk’s SolarCity trial, the Tesla CEO admitted that Powerwall production would not meet demand in the current quarter. 

Musk revealed that Tesla Powerwall demand stands at around 80,000 units, reported CNBC. The best-case scenario for Tesla Energy would be if it produced about 30,000 to 35,000 Powerwalls this quarter. The Tesla CEO explained that chip shortages affected the production of the home battery system. 

Musk talked about the challenges Tesla faced this year getting the supplies and parts it needs to produce its lineup of products. It isn’t surprising to hear Musk speak so candidly about the chip shortage affecting Powerwall production. 

During Tesla’s Q1 2021 earnings call, Elon Musk admitted that Tesla Model S Plaid production was hampered by the chip shortage that is still affecting many other automakers and tech giants. The chip shortage isn’t the only challenge Tesla or any other company is facing at the moment. 

In May, Musk talked about Tesla’s decision to remove lumbar support for the front seat of the Model 3 and Model Y. He elaborated that prices, especially for raw materials, were increasing industry-wide. 

At the time, Musk was referring to raw materials in the auto industry, but solar companies have been affected as well. As per the Financial Times, supply chain pressures have limited further reductions in the costs of solar installations. For example, S&P Platts noted that prices for hot-dipped galvanized steel coil doubled compared to early 2020. Those coils are used in solar panel frames and structures.

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“The narrative in the solar industry has shifted,” said S&P Platts analyst Bruno Brunetti. “We have seen steep declines in costs over the past decade, but we are seeing that stables now and even increase in some cases.” 

Earlier this year, Tesla announced that its solar products and the Powerwall would be sold together as an integrated package. Given that the two products are now sold together, and Tesla Energy faces similar obstacles as the company’s automotive sector, it is pretty remarkable that Tesla could still produce 30,000 to 35,000 Powerwalls in Q3. 

Many companies are experiencing supply chain difficulties as part of the aftereffects of the pandemic. CEOs, like Elon Musk, must make tough decisions to keep their companies going. Tesla Energy is only one part of Tesla as a whole. It still has a lot of growing to do but seems to be forging forward despite all the obstacles it faces.

The Teslarati team would appreciate hearing from you. If you have any tips, email us at tips@teslarati.com or reach out to me at maria@teslarati.com.

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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 hints it could see ‘a few more vehicles’ released soon

Denholm said on CNBC yesterday that “we do have a few other vehicles coming out.”

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Tesla Board Chair Robyn Denholm hinted the company could see “a few more vehicles” coming out and being released soon, although there is no indication of what could be on the way based on her comments.

However, Tesla has hinted toward several potential releases in the coming years, as other executives, including Chief Designer Franz von Holzhausen, have talked briefly about what could be on the way.

Denholm said on CNBC yesterday that “we do have a few other vehicles coming out.”

It was a vague and almost cryptic sentence, as, in all honesty, it was not completely clear whether she was talking about recent releases that are just making their way to market, like the Model 3 and Model Y “Standard,” or new vehicles altogether.

Nevertheless, it’s worth dissecting.

Tesla “Standard” Models

On October 7, Tesla launched the Standard Model 3 and Model Y, stripped-down versions of their now “Premium” siblings. The Standard trims lack premium features like leather seats, a rear touchscreen, and a glass roof, among other features.

Tesla begins deliveries of its affordable Model Y Standard

These cars are just starting to be delivered for the first time, so it is possible that Denholm was referring to these cars.

Potential Model 2 Hint?

There has always been a looming vehicle model that many Tesla fans and owners have been intrigued by: the Model 2.

This car was hinted at being the $25,000 model that Tesla was rumored to be developing, and many thought that was the vehicle that would be released earlier this month, not the Standard Model 3 and Model Y.

Instead, the Model 2 could be something that would enable Tesla to reach an entirely new consumer base, including those who are not able to swing the payment for the company’s more premium offerings.

It seems Tesla will have to launch some sort of extremely affordable model in the future, and with the Cybercab being slotted at that rough price point, it would not be out of the question for it to be in the realm of possibility for future releases.

It’s worth noting, however, that it is probably unlikely this will happen. Tesla is so deadset focused on autonomy, it seems Cybercab would take extreme precedence over the unconfirmed “Model 2.”

Cybertruck-inspired SUV

Tesla fans have been begging the company to develop a full-size SUV that would compete with the Ford Expedition or Chevrolet Tahoe, but the company has not given any indication that this would be something it would build.

Nevertheless, there was a very subtle hint in a recent promotional clip that showed a Cyber SUV mock-up placed strategically next to a clay model of a Model 3:

Tesla appears to be mulling a Cyber SUV design

The Model X is simply not what people want when it comes to an SUV, as it does not have the seating capacity and cargo space that many need with a full-sized SUV.

This issue, in particular, has been one that has been extremely relevant to the company’s future lineup as consumers have shown they would be interested in a Tesla vehicle that fit this description.

Additionally, von Holzhausen said in September that a Cyber SUV or a smaller electric pickup with a more traditional design is “definitely things we’ve considered…We’re working on so many innovative and fun things.”

Tesla gives big hint that it will build Cyber SUV, smaller Cybertruck

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Investor's Corner

Tesla enters new stability phase, firm upgrades and adjusts outlook

Dmitriy Pozdnyakov of Freedom Capital upgraded his outlook on Tesla shares from “Sell” to “Hold” on Wednesday, and increased the price target from $338 to $406.

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Credit: Tesla China

Tesla is entering a new phase of stability in terms of vehicle deliveries, one firm wrote in a new note during the final week of October, backing its position with an upgrade and price target increase on the stock.

Dmitriy Pozdnyakov of Freedom Capital upgraded his outlook on Tesla shares from “Sell” to “Hold” on Wednesday, and increased the price target from $338 to $406.

While most firms are interested in highlighting Tesla’s future growth, which will be catalyzed mostly by the advent of self-driving vehicles, autonomy, and the company’s all-in mentality on AI and robotics, Pozdnyakov is solely focusing on vehicle deliveries.

The analyst wrote in a note to investors that he believes Tesla’s updated vehicle lineup, which includes its new affordable “Standard” trims of the Model 3 and Model Y, is going to stabilize the company’s delivery volumes and return the company to annual growth.

Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings

Tesla launched the new affordable Model 3 and Model Y “Standard” trims on October 7, which introduced two stripped-down, less premium versions of the all-electric sedan and crossover.

They are both priced at under $40,000, with the Model 3 at $37,990 and the Model Y at $39,990, and while these prices may not necessarily be what consumers were expecting, they are well under what Kelley Blue Book said was the average new car transaction price for September, which swelled above $50,000.

Despite the rollout of these two new models, it is interesting to hear that a Wall Street firm would think that Tesla is going to return to more stable delivery figures and potentially enter a new growth phase.

Many Wall Street firms have been more focused on AI, Robotics, and Tesla’s self-driving project, which are the more prevalent things that will drive investor growth over the next few years.

Wedbush’s Dan Ives, for example, tends to focus on the company’s prowess in AI and self-driving. However, he did touch on vehicle deliveries in the coming years in a recent note.

Ives said in a note on October 2:

“While EV demand is expected to fall with the EV tax credit expiration, this was a great bounce-back quarter for TSLA to lay the groundwork for deliveries moving forward, but there is still work to do to gain further ground from a delivery perspective.”

Tesla has some things to figure out before it can truly consider guaranteed stability from a delivery standpoint. Initially, the next two quarters will be a crucial way to determine demand without the $7,500 EV tax credit. It will also begin to figure out if its new affordable models are attractive enough at their current price point to win over consumers.

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Elon Musk

Tesla preps for a harsh potential reality if Musk comp vote doesn’t go to plan

A successful vote for Tesla would see the compensation package get approved. But there is always the possibility of a rejection, which would likely see Musk leave the company.

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tesla cybertruck elon musk
Tesla CEO Elon Musk unveils futuristic Cybertruck in Los Angeles, Nov. 21, 2019 (Photo: Teslarati)

Tesla could be forced to look for a new CEO in the coming months, as a crucial November 6 Shareholder Meeting vote will determine whether Elon Musk will stick around.

A major vote is coming up at the 2025 Tesla Shareholder Meeting, as investors will determine whether Musk should be given a new compensation plan that would award him up to $1 trillion and more than one-fourth of the total voting power within the company.

Tesla board chair reiterates widely unmentioned point of Musk comp plan

A successful vote for Tesla would see the compensation package get approved. But there is always the possibility of a rejection, which would likely see Musk leave the company.

“My fundamental concern with regard to how much voting control I have at Tesla is if I go ahead and build this enormous robot army, can I just be ousted at some point in the future? That’s my biggest concern,” Musk said at last week’s Earnings Call. “That’s what it comes down to in a nutshell. I don’t feel comfortable wielding that robot army if I don’t have at least a strong influence.”

Tesla Board of Directors Head Robyn Denholm has been on somewhat of a PR tour over the past few days, answering questions about the compensation plan, which is among the biggest issues currently for the company.

Denholm told Bloomberg yesterday that Tesla investors need to be prepared for Musk to abandon ship if the package is not approved, which brings on a new question: Who would take over the CEO role?

That is a question Denholm also answered yesterday, bringing forth the conclusion that Tesla would not look for an outside hire if Musk were to leave the company. Instead, it would promote someone internally.

The way it was reported by Bloomberg and Reuters seems to make it seem as if Tesla is preparing for the worst, as it states the company “is looking at internal CEO candidates,” not preparing to do so.

Of the executives at Tesla who immediately come to mind as ideal candidates for a potential takeover should Musk leave, Tesla China President Tom Zhu and Head of AI Ashok Elluswamy both come to mind. Zhu has monumental executive experience already, as he was appointed to the role of Senior VP of Automotive back in December 2022.

He then returned to China in 2024.

It seems Tesla wants to align its future, with or without Musk, on the same path that it is currently on, and internal candidates might have a better idea of what that looks like and truly means.

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