Musk says Tesla to use new batteries, tech in Model Y; flags production risk

The company plans to start the production of Model Y at Gigafactory Berlin during the second half of 2021.

Musk said on Wednesday that it will take about two years for Tesla factories in Fremont and Shanghai to embrace the new technology.

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Tesla Inc. Chief Executive Elon Musk said on Wednesday the company will produce Model Y with a new structural battery design and technology at its Berlin factory next year and that could result in a “significant production risk”.

The U.S. electric carmaker plans to manufacture a new version of its Model Y crossover vehicle, and possibly even battery cells at the site. Last month, Musk said that Tesla will use its Germany-based plant to demonstrate a radical overhaul of how its cars are built.

The company plans to start the production of Model Y at Gigafactory Berlin during the second half of 2021.

Tesla's new battery cell - a larger cylindrical format called 4680 that can store more energy and is easier to make - is key to achieving the goal of cutting battery costs in half and ramping up battery production nearly 100-fold by 2030.

The company's new structural battery pack requires the new 4680 battery cells in order to work.

Musk said on Wednesday that it will take about two years for Tesla factories in Fremont and Shanghai to embrace the new technology.

“Fremont and Shanghai will transition in 2 years when new tech is proven,” Musk said in a tweet.

The company said last week that it delivered 139,300 vehicles in the third quarter, a quarterly record for the electric carmaker.

Tesla's delivery push has been supported by its new Shanghai factory, the only plant currently producing vehicles outside California, as it is also building a new vehicle and battery manufacturing facility near Berlin.