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A key takeaway was Tesla’s strategic handling of battery supply. The recent decline in EV demand from competitors and their retreat from hybrid investments has increased leverage for Tesla’s battery procurement. The company highlighted that many battery suppliers are desperate to sell at favorable prices, allowing Tesla to further lower vehicle costs without sacrificing profitability.
This buyer’s advantage, combined with the ability to outsource battery production—potentially even sourcing batteries externally rather than ramping their own 4680 cells—positions Tesla to lower prices on upcoming, more affordable vehicles while maintaining healthy margins.