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Musk's Hot Dance at the Berlin Factory

Despite the positive news of the new factory's launch in Berlin, Musk was excited to dance during the opening ceremony. However, during his speech to employees, Musk expressed concerns about the various issues TSLA is facing and believed that the industry should pay more attention to the battery supply chain.

Musk stated that the challenges in the coming years will be related to battery production and its supply chain, including raw material procurement. Last year, there were many challenges in the chip supply chain, and this year there is still a shortage of chips. I think battery production may face challenges next year

In the next two to three years, people will be concerned about the megawatt hours (MWh) of battery production, the supply chain, and the speed of battery material extraction and extraction. To some extent, the focus is on how many TWh (1 TWh=1 billion kWh) of batteries TSLA can produce annually, We roughly calculate that it takes about 300 terawatt hours to transform the world into a sustainable energy economy, which means a huge amount of 1 megawatt hour (MWh)=1000 kilowatt hour (kWh) batteries

Batteries are the core components of electric vehicles, accounting for over 40% of the total vehicle cost. With the outbreak of the new energy industry in recent years, the prices of battery raw materials have been continuously rising, making it difficult for TSLA to sustain its business strategy of reducing costs and prices.

At Battery Day in 2020, Musk stated that developing affordable mass market electric vehicles was a dream that the company had since its inception. However, since the third quarter of 2021, TSLA has raised prices multiple times. In the past week or so, TSLA has announced three consecutive price increases, with single price increases ranging from 10000 to 20000 yuan for four models, including the Model3 and ModelY. The highest cumulative price increase for the ModelY Long Range Edition has exceeded 30000 yuan.

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