EV maker Tesla (NASDAQ:TSLA) is facing a battery crunch and looking to lower costs, according to Reuters.
The company is looking to increase its battery production and has reportedly had discussions with material suppliers in China and Korea. Specifically, the company is looking at 4680 battery cells as it aims to decrease costs and improve battery performance.
Battery-associated challenges have already contributed to the cybertruck hitting the market later than envisaged. While Tesla has battery production in the U.S., it is also looking to secure the process with battery supply from Japan and Korea as well.
Separately, there also has been talk about the company beginning production at its planned factory in Mexico as soon as next year. In the meantime, the stock has already posted a hefty 63% gain so far this year.
Overall, Wall Street has a consensus price target of $211.93 on TSLA, implying a further 22.56% potential upside in the stock.
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