Tesla's in-house 4680 battery innovation driving down EV costs

From Nasdaq: 2025-04-08 09:08:00

Tesla has achieved a major milestone in battery innovation by producing its 4680 battery cells in-house at a lower cost per kilowatt-hour than external suppliers. This cost efficiency is significant as Tesla also operates in EVs, energy, AI, and self-driving sectors. Tesla’s vertical integration and focus on battery tech are driving down EV costs.

BYD Co Ltd and General Motors are also advancing battery technology in their EV businesses. BYD’s expertise in rechargeable batteries and GM’s joint venture with LG Energy Solution highlight the importance of vertical integration for cost reduction and efficiency in the EV industry. Both companies are prioritizing battery innovation to stay competitive in the market.

From a financial perspective, Tesla’s stock performance has seen a decline this year, while its valuation metrics like the forward price-to-sales ratio and Value Score are not as favorable compared to the industry average. The Zacks Consensus Estimate for Tesla’s earnings has also been trending downward, indicating potential challenges ahead for the company’s financial performance.

Despite the financial concerns, Tesla’s commitment to battery innovation and vertical integration in its production processes bodes well for the company’s long-term growth and competitiveness in the EV market. The focus on improving battery technology and reducing costs through in-house production reflects Tesla’s strategic approach to staying ahead in the rapidly evolving EV industry.



Read more at Nasdaq: Is Tesla’s In-House 4680 Battery a Game-Changer in the Making?