This sounds real bad for margins and the ER next Wed. However, by keeping CyberTruck/Semi volume low, there may be little impact to overall margins reported.Interesting report out of China saying that Tesla had to buy cathode coils from tier 2 suppliers in China to bridge a shortfall of 4680 production. CATL and BYD declined to supply them since they only want to supply complete cells. Tesla hasn’t been able to make enough cathodes for their 4680 production goals, apparently due to their inability to yield cathode DBE. This occurred in 2023 and may persist well into this year.
Tesla importing cell parts from China to expand 4680 battery capacity, report says
Tesla began purchasing cathode coils from two second-tier Chinese battery makers in the second half of 2023 and shipping them to its Texas factory in the US to produce 4680 batteries, according to local media.cnevpost.com
And if margins turn out terrible next week, then why on earth would Elon double down with his 25% demand at this time? Seems nuts unless they are much further along with the automation or margins or both. Like what if the Crazy prices of Cybertruck still has 12% margin built in.
Q4 Margins are fine - my final answer.