Tesla Inc (NASDAQ:TSLA) senior executive Lars Moravy on Tuesday clarified that the company is not inhibited by 4680 cell production to ramp Cybertrucks.

What Happened: As compared to the previous quarter, 4680 cell production in the first quarter rose by about 18% to 20%, Moravy said during Tesla’s first-quarter earnings call. In March, the company produced enough cells for over 1000 Cybertrucks at Giga Texas in a week.

“We expect to stay ahead of the Cybertruck ramp with the cell production throughout Q2,” Moravy said while adding that the company is looking to maintain multiple weeks of cell inventory to make sure it’s ahead of Cybertruck’s production ramp. However, the cell production will be in tandem with Cybertruck production, he noted

“We’re not going to just randomly build 4680s unless we have a place to put them and so we’re going to make sure we’re prudent about that,” he added. Moravy is Vice President of Vehicle Engineering at Tesla.

Just a couple of weeks ago, the company made 1000 Cybertrucks in a week, Moravy said. While the company is looking to achieve volume production to bring down costs, it still faces challenges with the many new technologies and supplier limitations, he added.

Why It Matters: In December, Reuters reported that the EV giant is struggling to make 4680 cells fast enough to meet its targeted annual delivery rate of a quarter million Cybertrucks. Tesla’s gigafactory in Texas is making only enough cells for about 24,000 Cybertrucks a year, the report said.

The annual delivery target of 250,000 Cybertrucks, company CEO Elon Musk has previously said, would not be reached this year but only in 2025.

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