Tesla’s (TSLA) stock is soaring on Monday after its supplier, Panasonic, announced that it has finalized preparations for the mass production of high-capacity electric vehicle (EV) batteries. This news comes as a significant boost for Tesla and the broader EV industry.
Panasonic’s new 4680 cells, which are five times more powerful than the previous generation 2170 cylindrical batteries, will be manufactured at its Wakayama plant in Japan. These larger cells, with a 46-millimeter diameter and an 80-millimeter height, will allow automakers to extend the driving range of electric vehicles while using fewer batteries to achieve the same capacity.
This development is a major step forward for the EV industry, as it addresses one of the key challenges facing widespread EV adoption: range anxiety. With the 4680 batteries, drivers can expect longer trips without needing to recharge as frequently.
Panasonic has already sent samples of these new batteries to several automakers and will begin full-scale production after receiving approval. The Wakayama plant will have a dedicated workforce of around 400 employees by March 2025, focusing on the development and manufacturing of these advanced batteries.
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At the time of writing, Tesla’s stock is up 3.14% to $217.33, according to Benzinga Pro data. This positive momentum is likely fueled by the news of Panasonic’s mass production of the high-capacity 4680 batteries. This news signals a significant step forward for Tesla and the broader EV industry, potentially driving further growth and adoption of electric vehicles in the years to come.
