Production lines, battery modules and cells are evolving
Tesla distinguishes itself from other manufacturers because it constantly upgrades its cars (others apply changes in packages every few years).
That same policy Tesla utilizes in other areas like battery production at the Gigafactory. According to Tesla's President of Automotive, Jerome Guillen, production at the Tesla Gigafactory evolves on various levels:
- new production lines are installed so the effect of scale is bigger (output exceeds 20 GWh annually)
- the design of production lines is improving
- the design of 21700 (or 2170) lithium-ion cells is improving - there is "a nice roadmap of technology improvements for the coming years"
Recently, CNBC had an exclusive opportunity to check out the Gigafactory full of automated production lines, which provides about 5,000 Model 3 packs a week.
With progress on all fronts, there is huge potential to increase production even further.
As Electrek notes, the battery modules are going to be upgraded in the new Model 3. Elon Musk said:
“We came up with a new design that achieves the same outcome, that’s actually lighter, better, cheaper and will be introducing that around the end of this year, probably reach volume production on that in Q1 or something. That will make the car lighter, better, and cheaper and achieve a higher range. That line is under construction, will be active in about six months.”
Improving battery production efficiency and reducing costs (below $100 kWh/kWh on cell level) will bring Tesla closer to profitable on the $35,000 Model 3 and in general on future more affordable electric cars.