US electric vehicle (EV) maker Tesla remains on track to begin lithium refining and cathode production and is set to begin lithium iron phosphate (LFP) cell production for energy storage this year.
Tesla still plans onshore production of critical battery materials to the US and begin domestic production of its first LFP cells later this year.
The LFP cell factory in Sparks, Nevada, is nearing completion, the company said in a 28 June post on X.
In December 2024, Tesla began operations at its lithium hydroxide refinery outside Corpus Christi, Texas, aiming to process its own lithium at scale following a surge in global prices.
The company delivered 384,122 EVs in the recent quarter, down from 443,956 units a year earlier. Energy storage deployment rose 2pc to 9.6GWh.
It continues to grapple with growing competitive and reputational pressures as Tesla market share declined across all major regions, including the US, Canada, Europe, and China.
The company launched the Robotaxi service in Austin, Texas and deployed the first energy storage battery Megapacks from its Shanghai factory. When paired with solar photovoltaic energy systems, Megapack are cost-competitive with traditional fossil fuel power generation, according to the company.
Tesla also launched the Model Y in India in July, marking the entry to the world's third-largest car market.
Second quarter profits were $1.2bn, down by 16pc from the same period last year, attributed to a decline in vehicle deliveries, reduced regulatory credit revenue and a lower average selling price.
The estimated cost of tariffs increased by around $300mn, two-thirds of which hit the automotive segment and the rest the energy segment, according to the company.
Tesla anticipates changes in demand and profitability, as challenges persist from the tax and energy law that US president Donald Trump signed on 4 July and from tariffs.
The repeal of the $7,500 tax credit by the end of this quarter limited supply of vehicles in the US, chief financial officer Vaibhav Taneja said.
He added that the legislation is adversely affecting the residential energy storage segment because of the early expiration of consumer credits.
