Tesla Stock Soars 4.49% on U.S. Battery Production Push

On June 6, 2025, Tesla's stock rose by 4.49% in pre-market trading, reflecting a positive sentiment among investors.

Tesla's CEO, Elon Musk, recently outlined the company's strategy to build a comprehensive battery production system within the United States. This move is significant as it reduces Tesla's reliance on Chinese raw materials, a dependency that other companies in the industry still heavily rely on. Analysts have noted that Tesla is the only automaker attempting to produce batteries at scale without depending on Chinese suppliers. This includes producing cathode active materials, refining lithium, manufacturing anodes, coating electrodes, assembling battery cells, and selling its own vehicles.

Tesla has been actively working on localizing its supply chain in the U.S. for several years. Initially, Chinese companies dominated Tesla's battery material supply, but this is changing with Tesla's internal projects, such as its lithium refinery in Texas. Additionally, Tesla is collaborating with manufacturers planning to produce battery cells in the U.S., further strengthening its domestic supply chain.

Tesla's efforts to localize its supply chain are driven by the need to mitigate geopolitical risks and enhance supply chain resilience. Recent global events, such as chip shortages and surging lithium prices, have highlighted the vulnerabilities in global supply chains. By establishing a "lithium mine - material - battery - vehicle" ecosystem in the U.S., Tesla aims to reduce transportation risks and shorten production cycles, thereby improving its supply chain's robustness.

Despite these strategic moves, the full implementation of Tesla's vertical integration model will take time and faces significant challenges. The company's ambitious plans to achieve complete independence in the battery supply chain are still in the early stages and will require sustained effort and investment.