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The next major technological milestone involves the 4680 battery cells, which Tesla aims to scale in production. With promising signals from insiders like Sawyer Merritt, early Model Y vehicles, particularly those produced in Texas, will incorporate these cells. The 4680 batteries offer better performance and are approximately 50% cheaper to produce—an enormous advantage for margins. The true impact of this innovation will become evident in the Q2 or Q3 earnings reports, as the improved margins reflect the transition to these new cells. A successful scale-up could significantly boost profitability and competitive positioning.