Tesla is apparently planning on bringing its battery production capacity that it uses for its electric vehicles to the US. The company currently manufactures these battery packs in Germany, so here are all the details.

For those unaware, the American automobile giant is working on building its battery cells with a new 4680 format for the last three years and will now be bringing them the US for the federal tax credit. Furthermore, this aligns with the brand’s plan of long term growth since the new structural battery pack architecture will be an integral part of its next generation of electric vehicle models. So now, the EV maker is producing the battery cells from its pilot plant in Fremont, California.

Tesla

Although, it is still relying on its Gigafactory in Texas and Berlin for battery production on a bigger scale. Back in 2022, it was rumored that Tesla was facing issues in making battery cells from its Gigafactory in Berlin and was even considering moving battery production equipment to the US. A new report now stated that the company is making the shift to get the full 7,500 US Dollars federal tax credit. To get this benefit, automobile makers basically need to source their battery cells from within North America.

Apparently, the move from Germany to the US was obvious considering a 3,645 US Dollars subsidy that the company will get directly from US Taxpayers for each 81kWh Model Y long range battery pack that they manufacture. As of right now, Tesla is also gearing up to ramp up production of its new 4680 battery cells at the Texas Gigafactory.

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