Tesla and BYD Deny Rumors about Halting Cooperation

On March 14, Tesla Chief Executive Elon Musk and Chinese electrical car and battery maker BYD denied a media report that stated the U.S. big was ending its cooperation with BYD on battery provides. In response, Musk posted on Twitter that “relations between Tesla and BYD are positive”.

The rumor originated from a Korean media outlet that confirmed that Tesla didn’t ask BYD to provide extra batteries for its Model 3 automobiles after the availability settlement between them expired earlier this yr. It could also be as a result of components such because the blade battery itself, the subsidies associated to electrical automobiles within the United States, and the aggressive relationship between the 2 sides.

The report additionally stated that Tesla will change into extra depending on LG Energy Solution, a battery maker in South Korea. Tesla at present makes use of LG Energy Solution and CATL merchandise for its European automobiles whereas utilizing Panasonic for North America, and these corporations might fill BYD’s emptiness.

The information of BYD’s cooperation with Tesla started in 2022. At that point, it was reported that BYD was supplying 10GWh batteries for Tesla European fashions, and Tesla fashions geared up with blade batteries had entered the testing stage. Subsequently, the information was confirmed by Lian Yubo, government vice chairman of BYD. “BYD respects Tesla and is ready to supply batteries to it immediately.”

The competitors between BYD and Tesla within the Chinese new vitality car market has intensified. According to the China Passenger Car Association (CPCA), BYD ranked first within the retail rating of latest vitality passenger automotive producers in 2022, with gross sales of 1.8 million automobiles, together with plug-in hybrid automobiles. Tesla China ranked behind BYD and SAIC-GM-Wuling with gross sales of 440,000 automobiles.

When contemplating solely pure electrical automobiles, Tesla and BYD are the 2 vehicle producers that had the best world gross sales volumes in 2022. Tesla nonetheless holds the highest spot with 1.31 million electrical automobiles offered, whereas BYD offered 910,000 electrical automobiles.

SEE ALSO: BYD’s October NEV Sales Triple Those of Tesla China

Meanwhile, BYD’s automotive exports are accelerating. Hedin Mobility Group AB, one of many largest sellers in Europe, signed an settlement with BYD in August final yr to distribute three BYD fashions in Germany. In the identical yr, BYD gained an order for 100,000 automobiles from SIXT, the most important automotive rental firm in Europe. Octopus EV, an EV leasing agency, may also purchase 5,000 automobiles from it over the subsequent three years. Behind these orders is the fast growth of BYD’s abroad affect.

Steve Westly, former Tesla board member and founding father of The Westly Group, stated in a CNBC interview final yr, “For the first time, I think there is a real challenger and that challenger’s name is BYD.”

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