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Tesla can’t build the new 4680 battery fast enough.

Tesla recently released its 2022 Q1 shareholder update, and the Model 3 and Model Y remain the top-selling EVs in the USA. During the first quarter, Tesla delivered 310,048 units, a 68 percent increase over the first quarter of 2021. In the report, Tesla also shared some details about what’s going on at its various locations around the globe.

This month, Tesla started Model Y deliveries from the new Gigafactory in Austin, Texas. At the celebration party, Tesla delivered the first updated Model Y featuring the 4680 in-house-made cells, single-piece front body castings, and structural battery packs. The Berlin-Brandenburg factory still only has the capacity to produce the older non-structural 2170 cells. Tesla will continue to sell models equipped with both battery packs, however.

The 4680 allegedly offers more power, range, energy, and a longer lifespan. Tesla eventually wanted Panasonic to do the development, but the process took too long, and the project was moved in-house. In February of this year, Tesla announced that Panasonic would commence with production trials.

The 4680 battery cells also debuted with Tesla’s new structural battery pack. This structural pack makes it easier to manufacture cars while increasing structural rigidity and safety. The 4860 battery cell is a more advanced technology, so why is Tesla still building Model Y with the 2170 battery pack?

The 4680 cell production is going strong at Tesla’s Kato Road battery-building facility, and by January this year, it had already produced the millionth unit. This is reportedly only enough for 1,400 Model Ys. There’s no shortage of 2170 battery cells currently built by Panasonic. If Panasonic’s production trials go well, it will likely give Tesla the capacity to equip all Model Y’s with the 4680.

“Challenges around supply chain have remained persistent, and our team has been navigating through them for over a year,” Tesla said in its report. “In addition to chip shortages, recent COVID-19 outbreaks have been weighing on our supply chain and factory operations. Furthermore, prices of some raw materials have increased multiple-fold in recent months. The inflationary impact on our cost structure has contributed to adjustments in our product pricing, despite a continued focus on reducing our manufacturing costs where possible.”