In response to these ongoing problems, Musk issued an ultimatum to the 4680 battery team: resolve the technical challenges or risk the project’s cancellation. This decisive leadership change came after Musk laid off around 10% of Tesla’s workforce earlier this year, indicating a shift toward a more aggressive management style. Following this restructuring, significant progress has been made. Engineers have reportedly mastered the dry coating process, which has been a major bottleneck for production.