Tesla's 4680 battery achieves a major milestone: production exceeds 20 million units.

On Tuesday, Tesla announced a major breakthrough in the production of its 4680 batteries at its Texas Gigafactory, with the factory producing its 20 millionth battery.

The 4680 battery is crucial for Tesla's new vehicle projects, such as the Cybertruck. Tesla introduced the 4680 battery on Battery Day in 2020, marking the company's first battery designed from scratch.

Tesla had previously claimed that the new design could potentially reduce battery costs by over 50%. Since then, Tesla has been working to ramp up production of the 4680 battery, but has faced some bottlenecks along the way, until now (to some extent)--

Tesla confirmed this milestone earlier on Tuesday via Twitter: the Texas Gigafactory has just produced its 20 millionth 4680 battery.

Tesla had announced in mid-June that the Texas Gigafactory had produced its 10 millionth 4680 battery, doubling its output in just four months. Over the past 16 weeks, Tesla has produced 10 million 4680 batteries, averaging 625,000 batteries per week.

According to analysts' estimates, the current production volume is much higher than the average over the past 16 weeks, with a conservative estimate of Tesla producing 800,000 4680 batteries per week. Tesla's 4680 battery has a capacity of approximately 100 watt-hours, and the battery pack has a capacity of 65 kilowatt-hours. This would be enough to produce over 1,200 car batteries per week. If the battery pack capacity for the Cybertruck is around 130 kilowatt-hours, this number would be halved.

Analysts say that an annual production capacity of around 4,000 megawatt-hours is a significant step forward. Although Tesla is still far from achieving its goal of producing 100,000 megawatt-hours per year at the Texas Gigafactory, the market is already discussing the large-scale production of the 4680 battery.