Tesla's 4680 battery faces challenges, with higher costs than expected and limited production

Tesla's 4680 battery is its key technology for reducing costs. However, as of March this year, the annual production capacity of 4680 batteries can only meet the needs of about 60,000 Cybertrucks, and the cost is much higher than expected. Tesla has not yet achieved mass production of dry positive electrodes. In contrast, the battery costs of companies such as CATL and BYD have dropped to RMB 0.4/Wh. Even if Tesla achieves its cost reduction goals by the end of the year, the cost of 4680 batteries may still be between RMB 0.8-1/Wh, which is twice that of CATL and BYD batteries. In addition, the safety, cycle life and charging speed of the 4680 battery are also weak.