(Reuters) – Tesla Inc <TSLA.O> Chief Executive Elon Musk said on Wednesday the company will produce Model Y with a new structural battery design and technology at its Berlin factory next year and that could result in a “significant production risk”.

The U.S. electric carmaker plans to manufacture a new version of its Model Y crossover vehicle, and possibly even battery cells at the site. Last month, Musk said that Tesla will use its Germany-based plant to demonstrate a radical overhaul of how its cars are built.

The company plans to start the production of Model Y at Gigafactory Berlin during the second half of 2021.

Tesla’s new battery cell – a larger cylindrical format called 4680 that can store more energy and is easier to make – is key to achieving the goal of cutting battery costs in half and ramping up battery production nearly 100-fold by 2030.

The company’s new structural battery pack requires the new 4680 battery cells in order to work.

Musk said on Wednesday that it will take about two years for Tesla factories in Fremont and Shanghai to embrace the new technology.

“Fremont and Shanghai will transition in 2 years when new tech is proven,” Musk said in a tweet https://bit.ly/2I8Gam3.

The company said last week that it delivered 139,300 vehicles in the third quarter, a quarterly record for the electric carmaker.

Tesla’s delivery push has been supported by its new Shanghai factory, the only plant currently producing vehicles outside California, as it is also building a new vehicle and battery manufacturing facility near Berlin.

(Reporting by Sabahatjahan Contractor and Kanishka Singh in Bengaluru, Editing by Sherry Jacob-Phillips)

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(Reuters) – Tesla Inc

Chief Executive Elon Musk said on Wednesday the company will produce Model Y with a new structural battery design and technology at its Berlin factory next year and that could result in a “significant production risk”.

The U.S. electric carmaker plans to manufacture a new version of its Model Y crossover vehicle, and possibly even battery cells at the site. Last month, Musk said that Tesla will use its Germany-based plant to demonstrate a radical overhaul of how its cars are built.

The company plans to start the production of Model Y at Gigafactory Berlin during the second half of 2021.

Tesla’s new battery cell – a larger cylindrical format called 4680 that can store more energy and is easier to make – is key to achieving the goal of cutting battery costs in half and ramping up battery production nearly 100-fold by 2030.

The company’s new structural battery pack requires the new 4680 battery cells in order to work.

Musk said on Wednesday that it will take about two years for Tesla factories in Fremont and Shanghai to embrace the new technology.

“Fremont and Shanghai will transition in 2 years when new tech is proven,” Musk said in a tweet https://bit.ly/2I8Gam3.

The company said last week that it delivered 139,300 vehicles in the third quarter, a quarterly record for the electric carmaker.

Tesla’s delivery push has been supported by its new Shanghai factory, the only plant currently producing vehicles outside California, as it is also building a new vehicle and battery manufacturing facility near Berlin.

(Reporting by Sabahatjahan Contractor and Kanishka Singh in Bengaluru, Editing by Sherry Jacob-Phillips)

Copyright 2020 Thomson Reuters.

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By Noel Randewich

(Reuters) – Tesla’s <TSLA.O> upcoming quarterly report could put another $3 billion in Chief Executive Elon Musk’s pocket.

The electric car maker on Tuesday saw the six-month average of its stock market value hit $250 billion, a milestone toward triggering the fourth of 12 tranches of options to buy Tesla stock at a discount, granted to the billionaire in his 2018 pay package.

Musk’s compensation is exclusively made up of a series of potential stock options rewards based on market capitalization and operational goals. To secure Musk’s fourth tranche, Tesla still must hit a goal related to revenue or profitability, and that could happen in the company’s third-quarter report, the date of which has yet to be announced.

Elon Musk’s expanding payout: https://fingfx.thomsonreuters.com/gfx/mkt/ygdvzklzopw/Pasted%20image%201602009124093.png

Tesla’s stock was down 0.8% at mid-day on Tuesday, but the company’s six-month average market capitalization rose, thanks to a strong rally in recent months.

Each tranche gives Musk the option to buy 8.44 million Tesla shares at $70 each, about a sixth of their current price.

At Tesla’s current stock price of $420, Musk would theoretically be able to sell the shares related to the upcoming tranche, plus three other tranches that vested in recent months, for a combined profit of $11.8 billion, or almost $3 billion per tranche.

Musk’s first tranche was worth about $700 million in May, when it vested, but its value has increased along with Tesla’s stock price.

The Silicon Valley billionaire’s pay package, which surpasses anything previously granted to top U.S. executives, was controversial when it was approved by shareholders. The median compensation for Tesla employees last year was about $58,000, according to a company filing.

Tesla’s stock has surged 400% in 2020 as the company increased sales of its Model 3 sedan, giving it stock market value

  • Tesla just reported record Q3 vehicles deliveries, which will result in more renewable energy credits it can sell to automakers like Ford, GM and Fiat Chrysler.
  • Other electric vehicle start-ups, such as Nio, Rivian, Lordstown Motors and Nikola, could benefit from zero-emission vehicle credits in the years to come.
  • More U.S. states are planning credit programs or will make existing ones stricter, and cover more classes of vehicles, including trucks.
  • The emissions trading market has proven to be a successful example of climate finance.



Elon Musk preparing food in a kitchen: Elon Musk guest appearance on CBS sitcom


Elon Musk guest appearance on CBS sitcom

Tesla’s ability to manufacture electric vehicles without losing money has been a constant concern for investors. As renewable energy credits have played a significant role in the recent string of quarterly profits from Elon Musk’s EV company, they have been a source of some frustration for Wall Street analysts — who have struggled to get a handle on how much revenue these credits will rack up in any quarter — as well as generating skepticism from investors.

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But there’s nothing dubious about the renewable energy credit market. In fact, Tesla’s domination of zero-emission vehicle credit trading — where it is estimated to have sold more credits than any other company — is an example of a climate finance mechanism that is working as it was designed to work. Tesla, unlike traditional automakers, risked it all on making and selling EVs. Meanwhile, traditional car companies are required to pay up, by other means, for the choice of delaying their transition to battery electric or fuel cell electric zero-emission vehicles.

“The last thing a company wants to do is pay their competitor to eat their own lunch,” said Simon Mui, deputy director of the clean vehicles & fuels group at the Natural Resources Defense Council. But he added that