Tesla reportedly intends to bring its electric vehicle battery production capability to the United States. The company now manufactures these battery packs in Germany; hence, the following information is provided.
For those uninformed, the American automaker has spent the previous three years constructing battery cells with a new 4680 format and will now ship them to the United States to claim the federal tax credit.
In addition, this is consistent with the brand’s long-term growth strategy, since the new battery pack architecture will be a key feature of the next generation of electric car models. The manufacturer of EVs is now making battery cells at its pilot plant in Fremont, California.
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Yet, it continues to rely on its Gigafactories in Texas and Berlin for large-scale battery manufacture. In 2022, it was believed that Tesla was having trouble producing battery cells in its Berlin Gigafactory and was even considering relocating its battery production equipment to the United States. According to a new source, the corporation is making the change in order to receive the maximum federal tax credit of $7,500. To obtain this benefit, automakers must essentially source their battery cells from North America.
Considering that the firm will receive a direct subsidy of $3,645 from US taxpayers for each 81kWh Model Y long-range battery pack it manufactures, the relocation from Germany to the United States is inevitable. Meanwhile, Tesla is preparing to increase manufacturing of its new 4680 battery cells at the Texas Gigafactory.