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How Will Tesla Get to 1,000 GWh of Battery Supply?

Tesla and Elon Musk have a huge goal to get to 1,000 GWh of battery supply. How will Tesla do this?

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How Will Tesla Get to 1,000 GWh of Battery Supply?

Elon Musk said that Tesla would work tirelessly to reach the a 1,000 GWh of battery supply in the United States, in order to satisfy the inflation reduction act. Will Tesla be able to do this?

Tesla believes they are well positioned to capture the market for energy storage with batteries and with electric vehicles. Is the U.S. making the inflation reduction act for climate change, or is it more for the U.S. to become energy independent. It could be both.

The inflation reduction act is a big deal for Tesla and Tesla could receive a lot of the benefits for this. You could call this act, the Tesla enrichment act. Tesla is in the best position to take advantage of this.

Tesla could hit the 1,000 GWh of battery storage production and with subsidies, this could be about $35 billion a year in pure profit. If Tesla can get a compact car at half the cost of a Model 3, then that will be a huge amount of additional profit too.

Tesla could sell one of these compact cars for $10,000 using the inflation reduction act, and still make a profit. I don't think Tesla will sell them for that cheap, but it sure is interesting to think about.

Tesla's Bright Future with the Inflation Reduction Act

Tesla can make cars and software limit their vehicles and sell them at a lower price through software limitation so that customers can take advantage of the tax credit. The mileage could then be unlocked after purchase.

1,000 GWh a year is a lot of battery storage. Tesla could keep most of its compact cars and sell them as robotaxis. Or Tesla could sell them for $100,000 each and have people operate them as robotaxis while still giving a cute to Tesla.

FSD is going to be finished one day and each day, more and more people are testing FSD beta. The 4680 batteries are continuing to ramp and one day, those batteries will allow Tesla to reach that 1,000 GWh a year of batteries.

It's important to be patient with all of this. Good things take time. Even if it's two years later than Elon Musk says, it's still going to be of great benefit for Tesla.

Elon said that Tesla would go as fast as humanly possible to get to 1,000 GWh of battery production in the U.S. Tesla will focus on the U.S. as it is going to be an incredibly profitable market. FSD will work best in the U.S. Tesla will want to take market share here before the Chinese.

All of Tesla's processes will be vertically integrated and costs will continue to reduce, especially with the inflation reduction act. I'm looking forward to seeing how things turn out over the years.

For more information, see this video by Tesla Economist:

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Tesla Daily, Screenshot

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