It is a supply solution that already reached a tipping point in 2021.

Battery supply has long been the biggest problem and limitation for Tesla. The impacts of this solving battery supply would be the biggest story for Tesla in 2022 and it would have the largest financial impact in the first 6-9 months of 2022. It would have continuing financial impact even with a ramp of 4680s. 4680s and the new factories will be huge but this would be even bigger.

Solving the battery constraint is having an abundance of battery supply so that other factors are constraining production. In December 2021, Tesla grew monthly production by 19% over November 2021. This single-month leap in production is what Tesla can do when they have enough batteries.

This was not a one-month freak occurrence. This is battery abundance that will last, continue and grow. Tesla still has more battery supply to use to grow monthly car production in January and February and beyond. Any limitations in car production will mean batteries will go in significant quantities in megapacks.