EV maker Tesla (TSLA) says that it has reached an important milestone in battery production. Indeed, the company is now making both key parts of its 4680 battery cells (the anode and the cathode) using a “dry” manufacturing process. This update, shared in Tesla’s Q4 and full-year 2025 report, suggests that Tesla has finally overcome one of the biggest technical hurdles it has faced with this next-generation battery. For years, there were doubts about whether this process could actually work at scale, and this announcement helps clear those up.
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To put it simply, Tesla is no longer mixing old and new methods when making these batteries, as earlier versions of the 4680 cells still used traditional techniques for part of the process. Interestingly, Tesla first talked about the dry-electrode idea back in 2020, saying that it could make batteries cheaper, easier to produce, and more energy-dense while taking up less factory space.
Tesla also revealed that it has started using these in-house 4680 batteries in some Model Y vehicles. This is important because it gives Tesla more control over its battery supply at a time when tariffs and global trade issues have made sourcing materials more complicated. In addition, as Tesla phases out the Model S and Model X and the Model Y and Model 3 make up a larger share of its total output, being able to build Model Y batteries domestically helps keep U.S. production steady.
What Is the Prediction for TSLA Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 11 Buys, 12 Holds, and six Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $401.27 per share implies 7.7% downside risk.
