During the 2024 Shareholder Meeting, Elon Musk announced that Tesla has made new innovations on the 4680 cell standard. Tesla has been working hard for several years to get a functional 4680 cell in production that either matches or beats the performance of the existing 2170 cell. The official Cybertruck account also shared an image (below) of the first 4680 dry-cathode process Cybertruck with its production crew on X.
We’re going to take a bit of a dive into the 4680, what exactly this new process and cell is, and then some of its possible advantages. So, grab your charging cable!
First prototype Cybertruck with in-house dry cathode 4680 cells – making it an all dry electrode vehicle pic.twitter.com/NzJxKQrRBp
Dry Battery Electrode (DBE) is a different process overall from the current Wet Battery Electrode (WBE) that is common today. This dry process removes the highly toxic solvents and furnace baking processes from the equation, saving both time and space, while also being environmentally friendly.
The Dry Cathode we’re talking about specifically means that the electrode – the conducting terminal at the edges of the battery – is produced in a dry process. In the previous process, it was produced with a wet process.
Tesla’s 4680 cell suppliers – LG and Panasonic – have both been working hard to cut down on costs and ramp up their own 4680 cell production while Tesla works on their own internal improvements as well. If Tesla has found a means to easily scale the Dry Cathode method, it’ll make 4680 cells and the batteries that they are a part of - cheaper to produce.
The 4680 Cell
The 4680 cell - 46mm wide, 80mm tall
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Tesla has used the 4680 cells to make structural battery packs for the Model Y. However, these vehicles had poor charging performance and lower energy density, and they were quickly removed from sales. The sheer size of the 4680 cell made it difficult to cool, limiting its performance.
The updated 4680 cell was announced at the November 2023 Earnings Call as Cybercell, making a comeback for the Cybertruck. This new version was going to have better energy density, as well as improved charging performance.
Sandy Munro of Teardown Titan fame showed that this improved version has about a 12% energy density increase, a pretty significant improvement. You can watch his teardown of the Cybertruck below.
Tabless Design
The tabless design of the 4680 cell also has an impact on its production, and how easy it is to manufacture. Think of the tabs as the little nubs on the top of a regular small battery. The lack of tabs means that production of the cell body doesn’t have to pause to add the tabs, reducing the chance for defects with the elimination of a process, and making it faster to boot.
Removing the tab also helps in cutting down the distance that electrons have to travel to get in and out of the cell – this means less resistance, and less energy lost in the process, increasing overall vehicle efficiency.
Advantages
This new 4680 cell process has a few advantages – including an overall cost reduction of up to 50% compared to the current wet process. That’s in addition to the dry process being more environmentally friendly, which will also allow for manufacturing of the cell to scale quicker.
Tesla wants to move from the standard 2170 cell to the 4680 cell for several reasons. The biggest, by far, is cost savings. The 4680 cell is physically a bigger cell and can be used to structurally support the vehicle, meaning cost savings on both, the production of the 4680 cell and the structure of the vehicle.
Easy and Cheap
There’s more too – the 4680 cell will be easier to manufacture because of its bigger size. The 2170 cell is tall and thin, while the 4680 cell is wide and stout. In addition, its unique tab-less design is supposed to generate less resistance, improving charging speeds and cell performance.
Essentially, Tesla can fill the space taken up by 4,400 2170 cells with only 960 4680 cells. This results in a significant reduction in the material used to encase each individual cell, thereby saving space and maximizing energy density for the space the battery pack takes up.
All in all, that could mean a future price drop for the Cybertruck as well as increase the rate of production. Tesla has envisioned producing approximately 250,000 Cybertrucks per year, and they’ll need a lot of 4680 battery packs to do so.
In the future, we can see Tesla bringing the 4680 cell with all these improvements - and more - to the rest of its vehicle lineup, as they will eventually surpass the 2170 cell technology.
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The massive legislative effort titled the "Big Beautiful Bill" is taking direct aim at what has become one of Tesla’s most critical and profitable revenue streams: the sale of US regulatory credits. The bill could eliminate billions of dollars from Tesla’s bottom line each year and will slow down the transition to electric vehicles in the US.
The financial stakes for Tesla are absolutely immense. In 2024, Tesla generated $2.76 billion from selling these credits. This high-margin revenue was the sole reason Tesla posted a profit in Q1 2025; without the $595 million from regulatory credits, Tesla’s reported $409 million in profit would have been a $189 million loss.
How the ZEV Credit System Works
Zero-Emission Vehicle (ZEV) credits are part of state-level programs, led by California, designed to accelerate the adoption of electric vehicles. Each year, automakers are required to hold a certain number of ZEV credits, with the amount based on their total vehicle sales within that state. Under this system, automakers that fail to sell a certain percentage of zero-emission vehicles must either pay a significant fine or purchase credits from a company that exceeds the mandate.
Automakers who fail to sell enough EVs to meet their quota have a deficit and face two choices: pay a hefty fine to the state government for each missing credit (for example, $5,000 per credit in California) or buy credits from a company with a surplus.
As an all-EV company, Tesla generates a massive surplus of these credits. It can then turn around and sell them to legacy automakers at prices cheaper than the fine, creating a win-win scenario: the legacy automaker avoids a larger penalty, and Tesla gains a lucrative, near-pure-profit revenue stream.
This new bill will dismantle this by eliminating the financial penalties for non-compliance, which would effectively make Tesla’s credits worthless. While the ZEV program is a state law, the Big Beautiful Bill will fully eliminate the penalties at a federal level.
A Multi-Billion Dollar Impact
The removal of US ZEGV credits would be a severe blow to Tesla’s financials. One JPMorgan analyst estimated that the move could reduce Tesla’s earnings by over 50%, representing a potential annual loss of $2 billion. While Tesla also earns similar credits in Europe and China, analysts suggest that 80-90% of its credit revenue in Q1 2025 came from US programs.
Why the Program Exists
While the impact on Tesla would be direct and immediate, the credit system has a wider purpose. It creates a strong financial incentive for legacy automakers to develop and accelerate their zero-emission vehicle programs, whether it’s hydrogen, electric, or another alternative.
Eliminating the need for these credits would remove that financial pressure. This could allow traditional automakers to slow their EV transition in the US without the fear of a financial penalty, potentially leading to fewer EV choices for consumers and a slower path to vehicle electrification in the country.
Big, But Not Beautiful
On Sunday Morning TV, Elon Musk was asked his thoughts on the Big Beautiful Bill. They were pretty simple. A bill could be big, or it could be beautiful - I don’t know if it can be both, Musk stated.
Elon Musk in new interview: "I was disappointed to see the massive spending bill, frankly, which increases the budget deficit and undermines the work the DOGE team is doing. I think a bill could be big, or it could be beautiful—I don't know if it can be both." pic.twitter.com/DnyjHN7xCY
The bill poses a threat to Tesla’s bottom line and to the adoption of EVs in the US market, where automakers will no longer have a financial incentive to transition to cleaner vehicles, a market they’ve regularly struggled in when competing against Tesla.
Tesla will have to work carefully in the future to cut expenses to remain profitable after the elimination of these regulatory credits.
Tesla is rolling out a thoughtful and much-needed update to its in-vehicle Supercharger UI. The update is designed to provide drivers with details about Superchargers and their locations.
The update will add new icons and contextual messages to clarify Supercharger access requirements or restrictions, such as paid parking. There’s nothing worse than navigating to a Supercharger only to find out it's only for customers, requires paid parking, or some other service.
The new details will appear in various locations, including the Supercharger list, Supercharger module, and above the navigation directions when navigating to a Supercharger.
The new Supercharger icons will indicate the following requirements:
Valet-only Parking
Pay to Park
Access Codes
Parking Floor (the floor the Supercharge is on in a parking garage)
These icons are initially displayed when you’re searching for a Supercharger in the list of Superchargers. Additionally, when navigating to a site that includes any of the above, your vehicle will now display specific alerts for access requirements.
Access Codes and Parking Floor information will be provided above the navigation card when you reach the destination.
Solving Common Frustrations
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While these may seem like minor tweaks, they are a direct solution to some long-standing and common frustrations for many Tesla owners. Many drivers have likely experienced the scenario of following navigation to an unfamiliar urban Supercharger, only to arrive and discover it’s buried deep within a paid parking garage, with no advance warning of the fees or specific floor location.
This update provides all the critical information upfront so that drivers can make informed decisions on where they would like to charge. No more surprise parking fees, no circling a multi-level garage at 3% battery, desperately searching for the red and white Supercharger signs, and no more getting stuck searching for an access code to charge.
Little Details Matter
These Supercharger updates are the definition of quality-of-life improvements. Little details that make a big difference in usability.
As the Supercharger network continues its massive expansion into more complex and densely populated urban centers, providing this kind of granular, logistical data becomes increasingly important.
Release Date
While Tesla hasn’t announced when these features will be added, they’ll likely be included in the next major Tesla software update, presumably update 2025.24 or 2025.26.
The Tesla app was recently updated to v4.46.5 and added the ability to restrict location visibility for other drivers of the vehicle. Although the app update didn’t include these Supercharger updates, we expect these new Supercharger details to also be added to the Tesla app soon.
