Unsurprisingly, batteries are the culprit holding back large volume expansion by the carmaker.
While plenty are ready to bash Tesla on short notice, with such a novelty product, it's not that simple to make all things work. At once. After all, the initial product market introduction and high volume production are two completely different things. And judging by the recent developments in both production and delivery systems, the California based carmaker is making strides in impacting both business area. However, one thing that Tesla cannot impact completely is battery production. And that's been cited by Elon Musk, the Tesla CEO, as the biggest culprit to their production volume expansion efforts.
For Tesla, the development and production priorities are simple: production numbers, deliveries, followed by the Model Y, solar roof tiles, Tesla pickup, Tesla semi, and Roadster. And every item (sans the roof tiles) will need more batteries. With the Gigafactory 2 gearing up to full capacity and the Nevada facility operating at near full capacity, working on new and improved power cells, it seems all their efforts are directed in allowing them to produce both cars and batteries quicker, but also cheaper, allowing the higher margins to be inputted back to R&D programs.
What really matters is time to volume production, not initial market intro. Apart from brief moments, Tesla vehicle production is limited by total battery output.
— Elon Musk (@elonmusk) November 19, 2018
For many, Tesla is a thorn in their heels. And this is becoming especially evident with less and less catastrophic predictions becoming true. However, the company still has a long way ahead of itself and batteries are still going to be their biggest hindering factor for years to come. But overall, we must say that for the most part, Elon Musk is proving everyone wrong. And there's nothing wrong about that. With bigger and bigger production and delivery goals set, it will be interesting to see how the Lithium and battery industries adjust. Especially with so many of the newcomers and legacy carmakers getting into the EV game with big plans and big dreams.