Tesla Stock Soars 4.7% on U.S. Battery Push

On June 6, 2025, Tesla's stock surged by 4.7% in pre-market trading, reflecting a strong bullish 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 particularly notable as Tesla aims to reduce its reliance on Chinese raw materials, a dependency that other companies in the industry still heavily rely on. According to Piper Sandler analyst Alexander Potter, Tesla's approach in the battery sector is unique. He noted that Tesla is the only automaker attempting to produce batteries at scale without depending on China. Musk himself emphasized the importance of supply chain localization in mitigating geopolitical risks, despite the challenges involved.

Tesla has been working for years to source and manufacture batteries domestically in the U.S. According to a 2023 Nikkei analysis, Chinese companies dominated Tesla's battery material supply chain, with 39% of its battery cell materials sourced from China. However, with projects like its lithium refinery in Texas, Tesla is gradually reducing this dependency. Additionally, Tesla is actively seeking partnerships with manufacturers planning to produce battery cells in the U.S., such as Panasonic, which is reportedly planning to build a large factory in the U.S. to produce batteries for Tesla's new electric vehicles, including the Model Y.

Panasonic is also planning to mass-produce Tesla's 4680 battery, a new type with an energy density of 300 kWh/kg, which could increase range by 16% and power output by six times. Musk has described the 4680 battery as a significant technological breakthrough, enabling Tesla to produce electric vehicles priced at $25,000. This vertical integration strategy, covering the entire supply chain from raw materials to final products, is unprecedented in North American automotive history and showcases Tesla's commitment to technological innovation.