Tesla has confirmed it has restarted production of battery packs for certain Model Y vehicles using its in-house 4680 battery cells, marking a return of the technology after the automaker previously halted sales of the variant amid performance concerns.
Tesla disclosed the restart in its fourth-quarter 2025 shareholder presentation, saying it had begun producing 4680-based battery packs for some Model Y vehicles as part of efforts to strengthen supply chain flexibility. The company had earlier discontinued the 4680-powered Model Y after customers reported underwhelming real-world range and slower, less efficient charging compared with versions using Tesla’s established 2170 cells.
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“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks,” Tesla said.
The 4680 cylindrical cell was unveiled at Tesla’s Battery Day in 2020 and was designed to reduce costs while improving energy density and manufacturing efficiency. The larger format enables fewer cells per pack, simplified wiring and improved thermal characteristics compared with the 2170 cells currently used in most Tesla vehicles.
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The cells were also intended to be integrated into a structural battery pack, allowing the pack to serve as part of the vehicle’s structure. Tesla has said this approach reduces weight and part count while improving rigidity, safety and manufacturing efficiency.
Tesla initially produced Model Y vehicles with 4680 battery packs at its Texas factory but later paused the variant as it focused on improving cell yields and scaling new production processes. Charging performance issues reported by early owners were also seen as a contributing factor to the decision to discontinue the model.
Since then, Model Y production has relied exclusively on 2170 cells. The company has now signaled a partial shift back to the 4680 format, though it has not disclosed which Model Y variants will receive the updated packs, production volumes or when vehicles equipped with the cells may reach customers.
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The update was released alongside details on Tesla’s broader battery strategy, including progress at its lithium refining facility in the United States. The site has entered pilot production and is the first in North America to process spodumene into lithium hydroxide, a key battery material. Tesla said the facility uses a simpler, lower-cost process with a smaller environmental footprint and reduces reliance on overseas suppliers.
The restart suggests Tesla is moving cautiously, resuming limited 4680 battery pack production for the Model Y while continuing to rely on 2170 cells for the bulk of its output. The company did not comment on whether performance issues associated with the earlier 4680-powered vehicles have been fully resolved.