Tesla Inc. (NASDAQ:TSLA) employee Cole Otto on Tuesday showcased the company's first-ever Cybertruck with dry cathode 4680 cells, which the EV giant aims to use to make the stainless steel truck's production profitable by the end of the year.

What Happened: "Introducing the first-ever Dry Cathode Cybertruck!" Otto wrote on LinkedIn.

The photograph shared by Otto, a senior manufacturing engineer at Tesla focussed on 4680 cell development, shows a small team gathered in front of the company's Fremont, California factory with two Cybertrucks.

Tesla uses 4680 cells to power the Cybertruck. Presently, the 4680 cells being manufactured by the company for the Cybertruck have cathodes manufactured using a more conventional "wet" process involving the use of a toxic solvent. In the second quarter, Tesla produced 50% more 4680 cells than the first quarter, the company said.

Why It Matters: Tesla started testing its prototype Cybertruck produced with in-house "dry" cathode 4680 cells in July. Once it goes into production, the use of in-house dry cathode 4680 cells would enable major cost reduction, the company said.

The launch of production Cybertrucks with dry cathode 4680 cells is expected in Q4, Tesla's Vice President of Vehicle Engineering Lars Moravy said last week.

Tesla started delivering its stainless steel Cybertruck in late November. According to Kelley Blue Book estimates, Tesla sold 8,755 Cybertrucks in the second quarter in the U.S., as compared to just 2,803 in the first quarter.

Cybertruck production is on track to achieve profitability by the end of the year, Tesla said during its second-quarter earnings.

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