During Tesla's latest earnings call, CEO Elon Musk issued a passionate plea for other companies to invest in domestic battery production to mitigate geopolitical risks. He highlighted Tesla's own costly efforts in Texas as a necessary but burdensome step amid fragile global supply chains. Musk warned that firms ignoring these vulnerabilities could face existential threats.
Elon Musk concluded Tesla's earnings call on Wednesday with an urgent appeal, imploring American companies to develop their own lithium refining and battery manufacturing facilities in the United States. Speaking with evident frustration, Musk emphasized the dangers of overreliance on foreign supply chains for critical materials essential to electric vehicles and energy storage.
"Can other people, please, for the love of God, in the name of all that is holy, can others please build this stuff?" Musk exclaimed. He criticized many businesses for underestimating geopolitical risks, stating, "There are so many companies out there that are asleep at the switch with regard to geopolitical risk — or they just have their head in the sand and hope nothing bad will happen. I'm way more paranoid than that."
Tesla has acted on these concerns by constructing advanced facilities in Texas. In December 2024, the company began processing lithium at its $1 billion refinery in Robstown. More recently, Tesla started producing dry-electrode 4680 cells, with both anode and cathode components made in Austin, destined for select Model Y vehicles. Musk described these as "more advanced than anything else in the world" but lamented Tesla's solitary role: "We're pretty much the largest, but also the only lithium refinery and cathode refinery in America."
Supporting Musk's caution, an October analysis by the Dallas Federal Reserve identified 66 lithium projects in the US, though most are in early stages and could take a decade or longer to reach production due to high costs and market volatility. Some progress is evident elsewhere; General Motors invested $625 million in 2024 in Lithium Americas' Nevada lithium mine, slated to open between late 2026 and early 2027, with the US government acquiring a minority stake in 2025.
Tesla's focus on battery infrastructure has bolstered its energy storage segment. The company's Megapacks generated over $3.8 billion in revenue in the fourth quarter, up 25% from the previous year, helping to counter pressures in its automotive business.
Analysts note the scale of Tesla's commitments. "What we learned from the earnings call is that a whole bunch of billions of dollars will be flowing out of the company in the form of capital expenditures: more than $20 billion," said David Meier, a senior analyst at Motley Fool. These funds will support expanding six production plants, advancing AI infrastructure, and upgrading existing facilities.
Musk concluded starkly: "Companies that don't do that, a bunch of them will cease to exist."
