What are Tesla's Procurement Targets for Renewables?
Tesla is encountering a year filled with challenges within the electric vehicle (EV) sector.
Global EV sales have been impacted by various factors, including political challenges and leadership controversies involving its CEO, Elon Musk.
Despite these hurdles, with a workforce exceeding 130,000 people and 2024 revenues approaching US$100bn, Tesla maintains a strong position in the EV market.
The organisation's newly-released 2024 Extended Impact Report details its ongoing and future efforts to achieve net-zero emissions.
It showcases various statistics, challenges and proposed solutions aimed at enhancing sustainability.
The headline figures
Tesla reports that, in 2024, its customers collectively avoided the emission of 32 million tons of CO2e, thanks to the combined impact of its global fleet, solar panels and energy storage solutions.
To illustrate the point, Tesla says this is “the same as driving an internal combustion engine vehicle about 78 billion miles.”
Moreover, Tesla benchmarks itself against competitors, stating that it "makes the most efficient EVs on the road,” and provides the following miles per kWh figures:
- Tesla Cybercab (estimated) – 5.5
- Tesla Model Y – 3.8
- Kia EV6 – 3.6
- Ford Mustang Mach-E – 3.4
- Hyundai IONIQ 5 – 3.4
- VW ID.4 – 3.1
- Jaguar I-PACE – 2.7
Addressing manufacturing and supply chain emissions
The supply chain remains a significant challenge with regards to emissions in the manufacturing sector.
Tesla notes: “While EVs today produce more GHG emissions during the manufacturing phase (including emissions from the supply chain), in less than four years of driving, a Tesla vehicle’s lifetime emissions are lower than those of a comparable ICE vehicle.
“Tesla is actively addressing this manufacturing-phase impact. Through innovations in material efficiency, operational and supply chain decarbonisation and end-of-life recycling, we are continuously reducing emissions at every stage of production.”
This will lead to a reduced emissions gap during manufacturing. Additionally, it states: "After 17 years of driving (which is the average life of a vehicle in the US), a single Tesla vehicle will avoid about 35 tons of CO2e globally.”
Further success is illustrated by its Megapack utility-scale energy storage system, launched in 2020, which utilises renewable sources for energy consumption during peak times, thereby replacing high-emission energy from fossil fuels.
Decarbonisation strategy at Tesla
Tesla asserts its commitment to achieve net-zero GHG emissions across its product lifecycle, from extraction and production through to usage and end-of-life recycling.
“As we have scaled the manufacturing of our sustainable energy products into new factories that have not yet reached full capacity, we have inevitably increased emissions in the short-term," the company continues.
“Therefore, it is more important now than ever before to continue developing our plan to achieve net-zero emissions quickly.”
The report highlights the potential of its new Cybercab robotaxi to significantly lower emissions, despite initial regulatory challenges during launch: “With full autonomy and optimised ride efficiency, our Cybercab robotaxi will significantly reduce GHG emissions per mile – assisting in doubling the emissions reduction compared to our Model 3 and Model Y.”
Tesla’s anticipation of increased demand in the zero direct-emission sector highlights its forward-thinking approach in transitioning operational electricity loads to renewable sources, aiming for a full match before achieving net-zero emissions.
Procuring more renewables
Tesla is actively enhancing its procurement of renewable energy to support both its production and operational needs, striving to increase these levels with each passing year.
Tesla explains: “We are working towards matching our operational energy use at our facilities by securing electricity from a mix of renewable energy projects through long-term PPAs with the grids on which we operate.”
Since 2023, Tesla reports having secured nearly 1 GW of wind and solar energy across North America and Europe, establishing a cleaner energy foundation.
“As we expand our operations, we plan to match remaining operational energy consumption through a combination of on-site renewables and renewable energy purchases.”
Tesla’s challenge to other automakers
The Extended Impact Report communicates a determined challenge to its industry competitors, urging a collective increase in electric vehicle production.
Tesla insists: “Electric vehicle sales by all automakers need to increase. We hope that every vehicle manufacturer will strive to produce hundreds of thousands of EVs per year, as significant reductions in emissions will only be achieved with an industry-wide shift.
“To support our mission, we are making it as easy as possible for drivers to own and charge their EVs.”
Select initiatives include sharing its charging connector design publicly in 2022 and subsequently expanding access to its supercharging network.
This effort includes offering charge port technology to other OEMs to facilitate their compatibility with the North American Charging Standard.
Using AI for enhanced factory sustainability
Tesla is integrating AI into its operations to boost sustainability, especially within its manufacturing processes.
AI optimisations are noted in Gigafactory Nevada’s HVAC systems and plastics and paint shops at Gigafactory Texas, enhancing natural gas efficiency and energy savings.
Hygrometric Control Logic is utilised at Gigafactory Berlin, leading to considerable annual energy savings.
The 2023 expansion of AI controls to other facilities, including the Berlin-Brandenburg and Fremont factories, showcases the positive impact of AI in managing factory energy consumption efficiently.
