Examining Tesla’s claim on drastic SiC reduction

OJO & YOSHIDA REPORT asked Yole Intelligence to analyze what Tesla’s claim entails and the future of the SiC market.

What’s at stake: 

Tesla revealed a plan for reducing SiC devices in powertrain by 75 percent – with little context. Is there any substance behind what they are claiming? At stake is not only the stock prices of SiC vendors, but also the future of the SiC industry, and Tesla’s influence on the minds of OEMs looking to use SiC in their EV models.   

True to its modus operandi with neither explanation nor verification, Tesla boasted at its Investor Day last week that it will cut silicon carbide (SiC) by three-quarters in its next-generation power train. 

The plan, revealed by Tesla’s powertrain engineering chief Colin Campbell, sent stocks of Wolfspeed, On Semiconductor, STMicroelectronics and Infineon tumbling. 

Without elaborating, Campbell claimed that Tesla has figured out how to use 75% less silicon carbide “without compromising the performance or efficiency of the car.” Campbell offered no clue about when the new powertrain would be ready for high-volume production.