Kamal Ghorui
Tesla CEO Elon Musk delivered a blunt warning in the closing minutes of Tesla’s earnings call. Musk warned the American companies that either they should build more battery-making infrastructure in the U.S. or risk falling behind. Sounding visibly fired up, Musk implored, “Can other people, please, for the love of God, in the name of all that is holy, can others please build this stuff?”Musk argued that too many companies underestimate their exposure to geopolitical risks tied to the fragile supply chains for critical materials used in electric vehicles and energy storage. “There are so many companies out there that are asleep at the switch with regard to geopolitical risk — or they just have their head in the sand and hope nothing bad will happen. I’m way more paranoid than that,” he said.
Tesla has taken unusual and expensive steps
In order to insulate itself, Tesla has taken unusual and expensive steps which includes building its own lithium-refining and battery-production facilities in Texas. In December 2024, Tesla started processing lithium at its $1 billion Robstown refinery, and this month announced production of dry-electrode 4680 cells in Austin, destined for certain Model Y vehicles. Musk described these facilities as “more advanced than anything else in the world,” but stressed Tesla does not want to be the only company making such investments.
Financial Pressure and Energy Storage Growth
Tesla’s heavy investments come as its auto business faces pressure. The company reported Q4 revenue of $3.8 billion from its Megapack energy storage batteries, a 25% increase year-over-year. Analysts, however, voiced concern about Tesla’s commitment of more than $20 billion in capital expenditures for new plants, AI infrastructure, and upgrades, noting uncertain near-term returns.
Elon Musk’s warning
Musk closed with a stark prediction: “Companies that don’t do that — a bunch of them will cease to exist.” His plea underscores Tesla’s strategy of building domestic battery infrastructure out of “desperation,” while urging others to share the burden of securing America’s energy future.
