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Tesla is a battery manufacturer that happens to make cars. Remember, they also make the Powerwall and grid-scale storage. I think the bigger question we should

Tesla is a battery manufacturer that happens to make cars. Remember, they also make the Powerwall and grid-scale storage. I think the bigger question we should ask ourselves is, "What is a tech company?"

samwillis 4y ago
Tesla are a battery pack manufacturer, they mostly use cells manufactured by Panasonic and CATL.
- speedgoose 4y ago
  LG too.
- dylan604 4y ago
  I thought the Gigafactories manufactured the batteries whose design they license from someone else that then get assembled into packs of various sizes. Are you saying the Gigafactories are not making batteries at all?
  - DennisP 4y ago
    Tesla does manufacture their own battery cells, though they're having trouble scaling up. https://www.reuters.com/business/autos-transportation/inside-teslas-drive-keep-musks-battery-promise-2022-09-06/ https://www.reuters.com/business/autos-transportation/inside...
  - phpisthebest 4y ago
    Pretty sure the Gigafactory in NV has LG staff inside them making the Cells, or rather running the machines that makes the cells. While it is under one roof I think there are 2 businesses inside, one LG and 1 Telsa
    - dylan604 4y ago
      interesting. was not aware they were 4-walling the set up to keep them separated to that extent. does that say anything about how LG feels about the relationship with Tesla, or anything about how LG feels about the ability of Tesla employees? Are the batteries coming out of the Gigafactory only for use by Tesla, or are they making LG branded batteries to be sold to LG customers? If they are selling LG products, then I could see why LG would have a much more vested interest in the factory. If they are only Tesla products via a licensing deal, why would they be as interested?
      - phpisthebest 4y ago
        According to Wikipedia it is Panasonic not LG but Panasonic is making the batteries in the factory.Tesla owns the land and building, and leases parts of the building to several suppliers It is not uncommon for a manufacturer to have dedicated machines or entire factory just for one customer [1]https://en.m.wikipedia.org/wiki/Gigafactory_Nevada https://en.m.wikipedia.org/wiki/Gigafactory_Nevada
nradov 4y ago
Tesla has only delivered a handful of relatively small "Megapack" grid storage battery systems so far. And they have had multiple fires. https://www.cnbc.com/2022/09/20/tesla-megapack-battery-caught-fire-at-pge-substation-in-california.html https://www.cnbc.com/2022/09/20/tesla-megapack-battery-caugh... Grid storage might eventually be a major business for Tesla but I doubt that it will drive huge profits. They don't have any unique sustainable competitive advantage and the customers are extremely price sensitive, so I expect long term profit margins to be low.

samwillis 4y ago

Tesla are a battery pack manufacturer, they mostly use cells manufactured by Panasonic and CATL.

speedgoose 4y ago
LG too.
dylan604 4y ago
I thought the Gigafactories manufactured the batteries whose design they license from someone else that then get assembled into packs of various sizes. Are you saying the Gigafactories are not making batteries at all?
- DennisP 4y ago
  Tesla does manufacture their own battery cells, though they're having trouble scaling up. https://www.reuters.com/business/autos-transportation/inside-teslas-drive-keep-musks-battery-promise-2022-09-06/ https://www.reuters.com/business/autos-transportation/inside...
- phpisthebest 4y ago
  Pretty sure the Gigafactory in NV has LG staff inside them making the Cells, or rather running the machines that makes the cells. While it is under one roof I think there are 2 businesses inside, one LG and 1 Telsa
  - dylan604 4y ago
    interesting. was not aware they were 4-walling the set up to keep them separated to that extent. does that say anything about how LG feels about the relationship with Tesla, or anything about how LG feels about the ability of Tesla employees? Are the batteries coming out of the Gigafactory only for use by Tesla, or are they making LG branded batteries to be sold to LG customers? If they are selling LG products, then I could see why LG would have a much more vested interest in the factory. If they are only Tesla products via a licensing deal, why would they be as interested?
    - phpisthebest 4y ago
      According to Wikipedia it is Panasonic not LG but Panasonic is making the batteries in the factory.Tesla owns the land and building, and leases parts of the building to several suppliers It is not uncommon for a manufacturer to have dedicated machines or entire factory just for one customer [1]https://en.m.wikipedia.org/wiki/Gigafactory_Nevada https://en.m.wikipedia.org/wiki/Gigafactory_Nevada

nradov 4y ago

Tesla has only delivered a handful of relatively small "Megapack" grid storage battery systems so far. And they have had multiple fires. https://www.cnbc.com/2022/09/20/tesla-megapack-battery-caught-fire-at-pge-substation-in-california.html https://www.cnbc.com/2022/09/20/tesla-megapack-battery-caugh... Grid storage might eventually be a major business for Tesla but I doubt that it will drive huge profits. They don't have any unique sustainable competitive advantage and the customers are extremely price sensitive, so I expect long term profit margins to be low.