Tesla has restarted production of Model Y vehicles equipped with its in-house 4680 battery cells in the US, more than two years after halting to prioritize the Cybertruck. Weak Cybertruck sales and tariff-related supply chain issues prompted the shift, with new non-structural packs improving repairability. The move was announced in Tesla's Q4 2025 shareholder update.
Tesla's reintroduction of 4680 battery cells into select Model Y variants represents a strategic pivot. Unveiled at Battery Day in September 2020, the larger-format cells (46mm diameter, 80mm height) were touted to halve costs and enable a $25,000 vehicle, though that plan was later abandoned.
Production milestones included the first million cells at the Kato Road pilot facility in February 2022, employee shipments for Model Ys with structural packs at Gigafactory Texas starting April 2022, and a peak of 868,000 cells per week by late 2022—enough for about 1,000 vehicles. Public sales of a 4680-equipped Model Y AWD ($49,990) began in April 2023 but ended in September 2023 to redirect output to the Cybertruck, which launched deliveries in November 2023 using improved second-generation cells.
Cybertruck sales underperformed through 2024-2025, creating excess capacity. This, combined with trade barriers and tariff risks on Chinese suppliers, led to resumption: "We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges," Tesla stated in its Q4 2025 update. A December 2025 supply contract cut with South Korea's L&F—from $2.9 billion to around $7,000—further underscored reduced Cybertruck demand.
Key advances include dry-electrode 4680 cells with anode and cathode production in Austin, Texas, plus planned domestic cathode there and LFP lines in Nevada for 2026. Unlike early structural packs (glued into the chassis, non-repairable), new packs are non-structural, fitting 4680 cells into trays designed for Panasonic 2170 cells. As CFO Vaibhav Taneja noted, engineers are "trying to resolve the [supply] situation by now putting 4680 cells in non-structural packs," enabling repairs via individual cell replacement.
Early 4680 issues—low energy density, poor charging curves—have improved, but cells still trail 2170s in thermal efficiency and charging speeds, potentially impacting range and owner experience. Tesla has not specified affected Model Y trims.
