Part 4/12:
Tesla’s two primary gigafactories are central to this cost discussion. Giga Berlin is already producing 5,000 vehicles weekly, which Tesla considers full volume production. Giga Texas (Austin) is close behind at 4,000 vehicles per week, with expectations to hit 5,000 soon, possibly next quarter.
A significant tailwind comes from falling lithium prices, which peaked with a 5x increase from 2021 to late 2022. As lithium becomes more affordable, Tesla's raw material costs should decrease, further improving margins. James emphasizes that lithium prices may take until Q1 or Q2 to stabilize, but once they do, savings will likely be substantial in Q3 and Q4.