Tesla Inc. TSLA CEO Elon Musk and Chinese electric vehicle maker BYD Co Ltd BYDDF BYDDY have both reportedly denied a media report indicating that their collaboration on battery supplies was coming to an end.
What Happened: Musk and the Chinese electric vehicle and battery maker denied a report that appeared in The Korean Economic Daily on Sunday, which stated that the companies were ending their cooperation on battery supplies, reported Reuters.
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Responding to a Twitter thread, Musk said, “That media report is false. Relations between Tesla and BYD are positive.”
As per The Korean Economic Daily report, the supply deal for batteries between Tesla and BYD in Europe expired earlier this year. It also stated that Tesla did not ask BYD for an additional supply of batteries for certain Model 3 vehicles due to alleged quality issues arising from a series of fire accidents of BYD’s lithium iron phosphate batteries.
“Contrary to BYD’s explanation, as accidents became more frequent, Tesla had no reason to use BYD batteries,” The Korean Economic Daily quoted an official from the battery business as saying.
Why Is It Important: According to knowledge launched by SNE Research in January, BYD has the second place within the electrical car battery market after Contemporary Amperex Technology Co. Limited, or CATL, with a 15.6% market share. BYD recorded the best fee of progress with a improve of 147.6% in put in capability, year-over-year.
BYD led the EV race within the fourth quarter of 2022, accounting for 19.8% of EV gross sales, as per knowledge launched by Counterpoint Research. Tesla, which sells solely battery-powered electrical automobiles, took the second spot with a 12.1% share.
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