OEM Equipment and MRO costs. There are currently 4 steps in the manufacturing process, with a final inspection at the end. They have about 35 production lines

OEM Equipment and MRO costs. There are currently 4 steps in the manufacturing process, with a final inspection at the end. They have about 35 production lines in total, and will likely have over 60 when they finish. New lines will have higher output. They run two 12 hour shifts a day, 7 days a week. The bottle neck is MRO at the moment. Material costs are a factor, but I know nothing about that. In the space of 3 years they implemented these 35 lines. Getting them up and running to meet the demand and timelines required massive investment, and cost savings measures were sidelined. They’re just not beginning to figure out ways to cut costs in order to achieve profitability. I don’t know if Tesla has a contract that dictates the cell price, but I know Panasonic production is not profitable at the moment. They will be, hopefully in the upcoming years. Their battery production is the most state of the art. Not only the battery technology, but the manufacturing process. It’s unparalleled by a long shot. The scale is breathtaking. Around 3.5 million cells a day with a target over 10 million. From what I know, bottle necks are costs. High equipment manufacturing costs, and high maintenance costs. Space isn’t the issue. They have plenty of space.