BY LEVI JOHNSON
Elon Musk’s Tesla Inc is presently facing a regulatory pressure challenge in China over its product safety.
The regulatory pressure onTesla emerged after consumer disputes over product safety and scrutiny over how it handles data.
The reason is oweing to Tesla present batteries usage from China’s Contemporary Amperex Technology Co (300750.SZ) (CATL) and South Korea’s LG Chem (051910.KS) for its China-made Model 3 and Model Y cars.
According to Reuters, CATL has been the sole supplier of the LFP batteries for China-made Model 3 cars with standard driving ranges since late last year.
Three sources told Reuters that right now, Tesla has been working closely with EVE to get its batteries to meet its requirements, as it aims to bring in the supplier.
But LFP batteries generally offer a shorter range on a single charge than the more popular nickel/cobalt alternative.
EVE would become the second supplier of LFP batteries to Tesla after China’s Contemporary Amperex Technology Co (300750.SZ) (CATL).
The talks are advanced and the Palo Alto, California-based company is seeking to finalise the partnership in the third quarter, said two of the people.