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Tesla, the electric vehicle (EV) titan, proudly announced a significant production feat this week. The company revealed the creation of its 20 millionth 4680 battery cell at its Texas Gigafactory. In an astonishing four months, Tesla has doubled its 4680 battery cell production. Which is a remarkable advancement in enhancing EV range, power, and durability. These high-performance cells were initially unveiling during Tesla’s Battery Day in 2020. While some Model Y vehicles have adopt these cells, they may be set aside for the eagerly anticipated Cybertruck.
Meanwhile, Tesla is contesting a $230 million legal fee claim made by shareholder lawyers concerning director compensation. The company considers this claim an “unwarranted windfall” and seeks approval for a fee not exceeding $64 million. It’s important to note that CEO Elon Musk’s separate $56 billion compensation is not part of this lawsuit. In July 2020, the dispute was resolved, with directors agreeing to reimburse Tesla $735 million in a $919 million deal. Shareholder lawyers are seeking 25% of this settlement. A figure Tesla disputes as inflated and not reflective of the company’s actual benefit from the deal, estimated at $295 million. The primary discrepancy arises from stock options valued at $458 million. Tesla clarified that these options couldn’t be exercised. Revealing a more modest advantage of approximately $20 million, attributed to reversing accounting costs. Elon Musk is not involved in this settlement.
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Tesla’s stock, trading as TSLA, ended the week with a 1.6% decline, closing at $251.12, after reaching a weekly high of $268.38 on Tuesday.
OSHA Concerns Plague GM and LG Partnership
Growing apprehensions about workplace safety have prompted the Occupational Safety and Health Administration (OSHA) to recommend imposing substantial fines of $270,000 on the Ohio joint venture battery plant operated jointly by General Motors (GM) and LG Energy Solution. OSHA’s recommendation comes in response to the discovery of multiple violations. Including insufficient safety training and non-compliance with federal guidelines for personal protective equipment usage. The joint venture, known as Ultium Cells, direct to adhere to OSHA’s directives. Including the installation of mandatory machine guarding and the implementation of worker training programs for hazardous energy control and emergency response procedures.
In response to OSHA’s recommendation, Ultium Cells issued a statement reaffirming its commitment to prioritizing workplace safety. Thus, the company has requested a hearing with OSHA, demonstrating its willingness to engage in dialogue to address these issues.
Adding complexity to the situation, OSHA has been conducting an ongoing inspection at the Ultium facility, initiated by a fire incident in June. However, the agency has also launched three separate inquiries. One of which is related to workers’ exposure to chemicals due to a pressure gauge failure in August, leading to the leakage of battery slurry onto the plant floor.
General Motors’ stock concluded the week with a 3.1% decline, settling at $29.66, after reaching a weekly high of $31.94 on Wednesday.
VinFast Enhances Position with VinES Acquisition
Vietnamese EV manufacturer VinFast has strategically strengthened its position by acquiring a 99.8% stake in battery maker VinES. This strategic move is expect to ensure a stable supply of batteries for VinFast’s electric vehicles, despite initial increases in expenses. The acquisition is design to optimize operational costs and elevate the technological capabilities of VinFast’s EV offerings, with an anticipated 5%-7% reduction in battery expenses.
Furthermore, VinES’s founder, Pham Nhat Vuong, commit to covering all interest payments associated with VinES’s existing borrowings until 2027. Underscoring strong support for VinFast’s electric vehicle ventures. thus, VinFast’s stock reached a weekly high of $8.24 on Friday before concluding the week with a closing price of $7.98.
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Disclaimer: Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
