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Tesla relies on China for 39% of its battery supply chain: report

Image used with permission for Teslarati. (Credit: Tom Cross)

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A recent analysis of publicly-available information about Tesla’s supply chain has reportedly revealed that almost 40% of the suppliers for materials used in the company’s batteries are Chinese companies. The analysis was conducted by Nikkei Asia in collaboration with Tokyo’s Fronteo, which utilizes a machine-learning algorithm to find data. 

As noted in the companies’ analysis, public information included in financial statements and press releases identified 13,428 companies that were believed to supply items for Tesla’s electric vehicle production. The number includes “quinary” suppliers, which are five steps up the supply chain. 

Interestingly enough, China ended up being listed as the largest supplier of materials for the lithium-ion batteries that are used in Tesla’s electric vehicles. Companies from China comprised 39% of the 61 firms that were listed under the EV maker’s “storage battery” category. 

These companies included Ganfeng Lithium, a notable producer of lithium products; Novoray, which produces inorganic compounds; and Zhejiang Huayou Cobalt, which produces cobalt. The Chinese government holds shares in Novoray and Huayou Cobalt, with a 9% and 12% stake, respectively. 

Despite China’s heavy presence in Tesla’s batteries, Nikkei Asia and Fronteo’s analysis indicated that United States companies comprised 22% of Tesla’s overall suppliers. From an overall standpoint, Chinese firms accounted for only 17% of Tesla’s suppliers. 

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Fronteo director Mari Yamamoto noted that Tesla faces some risk due to its battery supply chain’s dependence on Chinese companies. Tesla, however, has shown signs that it is taking steps to lower its reliance on Chinese parts and materials. Tesla’s investment in a dedicated lithium refinery in Texas is a notable indication of the electric vehicle maker’s intentions. 

It should be noted that Tesla’s electric vehicles, particularly the Model Y crossover and the Model 3 sedan, are considered among the most American-made vehicles today. On Cars.com’s 2023 American-made Index, the Model Y stood at the top of the website’s rankings, followed by the Model 3 in 2nd place, the Model X SUV in 3rd place, and the Model S sedan in 4th place. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads-up. 

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla offers legacy Model Y owners an interesting promotion

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Credit: @TeslaFrenzy/X

Tesla is offering those who are owners of the legacy Model Y an interesting promotion in an effort to get them into the newest version of the all-electric crossover.

The Model Y underwent an overhaul by Tesla over the past year, and earlier this year, the company finally started launching it in markets across the globe.

It was first launched in China, Europe, and North America.

Tesla’s focus on switching over production lines had cost it several weeks of production and deliveries in the first quarter, and now the company is playing catch-up to keep pace with its yearly delivery goal. It is offering several promotional discounts on vehicles within its lineup, but now Tesla is pulling out an additional stop with the new Model Y.

As a way to push legacy Model Y owners into the new vehicle, Tesla is offering a $2,000 discount to those drivers if they take delivery of the new build:

The new Model Y offers substantial benefits over the older version, and the changes are not just different in terms of aesthetics:

The new Model Y features acoustic-lined glass for a more peaceful cabin, refined suspension for a better ride, a sleeker design for better aerodynamics, and even smaller changes like quieter-closing doors.

With some concerns about demand, it still seems Tesla has plenty of buyers, but it would truly like to get more people in the new Model Y. Tesla came in under consensus estimates for deliveries this past quarter, but did spend several weeks switching over production lines at all of its factories.

Still, the automaker is moving toward a big year with the rollout of the Robotaxi ride-hailing service and affordable models coming soon.

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Tesla exec shares unique Supercharger team rule that accelerates EV adoption

It is a rule that allows Tesla to become an industry leader in EV charging services.

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Credit: Tesla Charging/X

Tesla Director of Charging for North America, Europe, Middle East, Africa, and Asia Pacific Max de Zegher recently shared some insights on a rather interesting rule that is being followed by the Supercharger team. It is a rule that, in a lot of ways, allows Tesla to further accelerate EV adoption.

No Exclusivity

In a recent post on its official social media account on X, the Tesla Charging team noted that it does not have exclusivity clauses for EV charging with property owners. As per the team, they discourage property owners to opt for exclusivity clauses since EV charging should not be restricted. “Hosting more charging infrastructure improves range confidence, keeps charging prices low, and accelerates EV adoption,” the Tesla Charging team wrote in its post.

While the Supercharger Network could have been a strong moat for Tesla in the electric vehicle sector, the charging network has been opened to other automakers’ EVs over the past years. In North America, Tesla’s home-grown NACS has become a standard, being adopted by veterans like Ford and General Motors and newer companies like Lucid Motors and Rivian.

Charging Director’s Comments

In a follow-up comment, de Zegher stated that the Tesla Charging team makes it a point to explain to landlords why EV charging should not have exclusivity clauses. As per the executive, there is no shortage of areas that could host EV charging spaces, so it only makes sense to support their expansion.

“When landlords offer us exclusivity, we actively reject it and explain our reasoning. We encourage them to install as much charging infrastructure as possible. We stand by our goal of ensuring as much dependable and affordable charging infrastructure as possible, whether from Tesla or other providers. There is no shortage of parking spaces, especially with increasing autonomy on the horizon. Legal moats only slow down EV infrastructure growth,” de Zegher wrote in a post on X.

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Tesla Supercharger Stats

As per Tesla in its Q1 2025 Update Letter, the company operates 7,131 Supercharger stations with 67,316 Supercharger stalls worldwide as of the end of the first quarter. This effectively makes the Supercharger Network into one of the most reliable and cost-effective charging solutions in the market.

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Tesla Model 3 driver is using FSD to travel to Mt. Everest Base Camp

The ambitious, nearly 4,000-kilometer (2,485-mile) Tesla FSD journey is being livestreamed on Chinese social media.

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Credit: Douyin 老高懂电车

Count on Tesla drivers in China to push Full Self Driving (FSD) as far as it could go. As could be seen in videos posted on Chinese social media, a brave Model 3 owner is currently going on an epic journey from Henan Province to the base camp of Mt. Everest on FSD.

Recent posts from the Model 3 driver suggest that the ambitious destination may be within reach.

Epic FSD Journey

As noted by Tesla owner-enthusiast Aaron Li, the journey from Henan Province to the base camp of Mt. Everest spans almost 4,000 kilometers (2,485 miles). The journey itself is epic, with stunning vistas and roads that require some drivers to bring oxygen canisters with them. The fact that it is being done using FSD makes it extra impressive. 

Based on the videos that have been recently shared, the Model 3 running FSD seems to be nearing the Everest Base Camp. There seems to be a good chance that the Tesla Model 3 may reach its destination this Friday.

Previous Everest Trips

This is not the first time that a Tesla has driven to Mt. Everest’s base camp.  That would be a Model 3 that was driven in September 2020. That vehicle, which went on a long 5,500 km (3,400-mile) journey, was manually driven to its destination. 

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In April 2021, Tesla China announced that it has completed the buildout of 11 Supercharger stations in the picturesque route from Chengdu to Tingri. This route would allow drivers to reach the base camp of Mt. Everest. Sure enough, in July 2022, Tesla China shared a video of two Teslas—a Model X and Model Y—reaching the Everest base camp without any issues. Numerous other Tesla drivers have since taken on the long, picturesque journey.

Check out this Tesla Model Y’s journey to the Mt. Everest base camp in the video below.

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