Tesla insiders reveal that manufacturing the Cybertruck is a disaster, costs getting out of hand

EV giant Tesla is facing some major challenges in the production of the Cybertruck, with insiders revealing that the main bottleneck lies in the manufacturing of the vehicle’s advanced lithium-ion battery cells called 4680. Approximately 1,360 of these cells are required for each Cybertruck, and the company is experimenting with a novel dry-coating electrode process to expedite production, as reported by Reuters. Insiders informed Reuters that Tesla’s attempt to scale up the dry-coating process for an entire vehicle is proving to be a formidable task. While dry coating electrodes is a proven method for small energy storage devices, implementing it on a mass scale and at high speed, as required for electric vehicles (EVs), is uncharted territory. Battery technology consultant Yuan Gao highlighted that Tesla is the first to attempt commercializing this innovative approach. To meet the production target of 250,000 Cybertrucks, Tesla must manufacture nearly one million 4680 cells daily. Presently, the Giga Texas factory is reportedly producing cells at a rate sufficient for only 24,000 Cybertrucks per year, posing a substantial shortfall. Despite the challenges, some insiders remain optimistic, suggesting that once Tesla overcomes the hurdles, the production speed could accelerate. However, the company’s ambitious goals hinge on successfully resolving the technical intricacies associated with the innovative dry-coating process. Battery cell production is not the sole issue complicating Cybertruck production; challenges in bending the thick stainless steel panels that comprise the vehicle’s distinctive exterior have also surfaced. Moreover, the exact number of Cybertrucks delivered to date remains unclear, with reports indicating only a limited quantity handed over following a reportedly chaotic delivery event. Tesla CEO Elon Musk acknowledged the hurdles during the Q3 quarterly earnings call, noting the “enormous challenges” in achieving volume production and ensuring the Cybertruck becomes cashflow positive. Musk’s acknowledgement of the uphill battle with Cybertruck production reflects the company’s historical struggles in meeting ambitious production targets. Despite these challenges, insiders remain hopeful that once the obstacles are overcome, Tesla’s innovative approach could revolutionize EV manufacturing.