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Tesla in talks with potential Gigafactory 3 battery supplier for China’s Model 3: report

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Tesla is reportedly looking into China-based Contemporary Amperex Technology Co Ltd (CATL) as a potential battery partner for Gigafactory 3, which is expected to start producing electric cars by the end of the year. CATL is among China’s most prominent battery suppliers, and it is on track to become the nation’s biggest manufacturer of lithium-ion batteries.

Bloomberg notes that the update was provided by people familiar with the discussions, who asked to remain anonymous due to the talks still being private. According to the publication’s sources, the two companies are discussing the possibility of a partnership for Gigafactory 3, but there is no guarantee yet that an agreement will be met.

Tesla has been showing signs that it is in the process of looking for battery suppliers for the upcoming facility, which is expected to produce both the Model 3 and Model Y for the local Chinese market. The company did mention a “fully qualified” vendor in its latest annual report, though Tesla also highlighted that it is working on adding more. This “qualified vendor” appears to be referenced by the recent report’s sources, who note that CATL is already discussing the required specifications of the battery cells with Tesla.

This is not the first time that rumors emerged about Tesla’s potential battery partner for Gigafactory 3. Last January, reports emerged pointing to Tesla allegedly signing a preliminary agreement with China’s Tianjin Lishen for the Shanghai-based factory’s batteries. The rumor was short-lived, with Tesla stating that no preliminary arrangements have been reached. It remains to be seen if the electric car maker will respond similarly to the recent CATL reports.

Having a formidable battery partner is a necessity for Tesla’s expansion plans in China. For the company to saturate the country’s electric car market, it should be able to manufacture affordable, high-volume vehicles that leave no compromises in terms of quality. For this to happen, Tesla must be able to make premium battery packs at scale. This is something that the company’s Chinese battery partner must keep in mind, as Panasonic, Tesla’s partner that supplies the cells for the Model S, 3, and X, admitted last year that some of the slowdowns in Gigafactory 1’s production could be blamed on its inability to meet the electric car maker’s demand. “The bottleneck for Model 3 production has been our batteries,” Panasonic’s automotive business head Yoshio Ito said.

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Tesla’s Gigafactory 3 is showing a notable amount of progress over the past months, with recent statements from a Shanghai official estimating that the facility will be completed by May. Just as initially scheduled, tooling of the factory is expected to commence immediately after, allowing Tesla to produce its first locally-made Model 3 by the end of 2019.

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’s Elon Musk shares optimistic teaser about FSD V14: “Feels sentient”

FSD V14 is arguably the second biggest update to Tesla AI/Autopilot after the release of V12, Musk wrote.

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Credit: Tesla Europe & Middle East/X

Tesla CEO Elon Musk has provided a rather exciting teaser about the capabilities of Full Self-Driving’s (FSD) upcoming V14 update. 

As per Musk, V14 is arguably the second biggest update to Tesla AI/Autopilot after the release of V12, which started its initial rollout to Tesla employees way back November 2023.

Tesla FSD V14

Elon Musk has been teasing the capabilities of FSD V14 in recent weeks. Earlier this month, the CEO shared that FSD V14 will feature a 10X higher parameter count, and it will also nag drivers significantly less than the system’s current iteration. While FSD V14 is not Unsupervised FSD, which is being used in the Austin Robotaxi pilot, it is expected to be a significant improvement nonetheless.

“The FSD release in about 6 weeks will be a dramatic gain with a 10X higher parameter count and many other improvements. It’s going through training & testing now. Once we confirm real-world safety of FSD 14, which we think will be amazing, the car will nag you much less,” Musk wrote in his post.

“Feels sentient”

Musk recently shared some more details about FSD V14 on X. In response to a video of a William Blair analyst who mentioned that Tesla’s Robotaxi service felt a lot more like a person was driving it compared to Waymo’s robotic maneuvers, Musk noted that “Version 14 of Tesla self-driving fells sentient.”

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Musk also clarified that the system that the William Blair analyst experienced was Version 13, so the system’s performance will definitely get even better. “He was just on version 13. Version 14 is the second biggest update to Tesla AI/Autopilot ever after V12. It feels alive,” Musk wrote in his post.

Musk’s comments bode well for the rollout of FSD V14. So far, FSD has reached a point where drivers and passengers have commented that the system already operates a vehicle in a very cautious and humanlike manner. Having a system that feels “sentient,” as the CEO noted, would most definitely be game-changing.

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Tesla Model Y L attracts crowds across China stores

The Tesla Model Y L is shaping up to be a big hit in China.

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Credit: @thaichiminh1907/X

Tesla has officially rolled out the Model Y L, a six-seat variant of its best-selling SUV, across all showrooms in China, and it is getting a lot of attention from potential buyers.

Images and videos from Tesla stores in China show crowds of people checking out the recently released extended wheelbase all-electric crossover.

Model Y L details

The vehicle, which carries a starting price of RMB 339,000 ($47,180), went live in Tesla China’s configurator this week. Deliveries are scheduled to begin in September, and early media reviews have already been released following the lifting of an embargo.

Unlike a full model refresh, the Model Y L is positioned as a new variant within the existing Model Y lineup. It joins the five-seat rear-wheel drive (RWD) and long-range all-wheel drive (AWD) Model Y variants currently available in China.

The six-seat Model Y L features dual-motor all-wheel drive, a 0–100 km/h time of 4.5 seconds, and an 82.0-kWh battery pack from LG Energy Solution. Its CLTC-rated range reaches 751 km, the highest among Tesla’s Model Y trims.

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So far, the reception to the Model Y L appears to be very warm, with photos and videos of stores in locations such as Shanghai and Shenyang showing numerous people checking out the recently released vehicle. Reports from industry watchers in China also suggest that Tesla received about 35,000 orders for the Model Y L on its first day of release.

Market backdrop

The timing of the Model Y L’s release comes as Tesla faces headwinds in China’s competitive SUV segment. Between January and July, Model Y retail sales in the country reached 202,257 units, a 17.15 percent decline compared to the same period last year, according to data cited by CNEVPost. It should be noted, however, that a good portion of this decline was due to the retooling of Tesla’s factories to make way for the new Model Y.

Despite the slowdown, the Model Y remains one of Tesla’s strongest performers globally. By introducing a higher-range, six-seat option, Tesla appears to be positioning the Model Y L as a way to boost demand and appeal to new buyers in a market that was previously only accessible to the much more expensive Model X.

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Tesla Model Y L gets disappointingly far production date in the United States

Fans of the extended wheelbase six-seater in the United States are in for a long wait.

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Credit: @TeslaNewswire/X

The Tesla Model Y L is making a lot of waves in the electric vehicle community, but fans of the extended wheelbase six-seater in the United States are in for a long wait.

This was, at least, according to Tesla CEO Elon Musk, who provided a disappointingly long timeline for the Model Y L’s production in the United States.

The Model Y L

The Model Y L has received near universal acclaim from electric vehicle enthusiasts and auto reviewers in China alike. Priced at just RMB 339,000 ($47,180) and fitted with a spacious and comfortable cabin, the Model Y L seemed destined to become a segment killer. And since the vehicle is also produced in Tesla’s existing Model Y lines, it seemed like the vehicle would be released worldwide soon. 

It was then no surprise that many Tesla community members were keen on asking if the Model Y L will be released in the United States anytime soon. Others also wondered why CEO Elon Musk was very quiet about the vehicle despite all the buzz it was generating. Eventually, Musk did share an update about the Model Y L, but it was not what many expected.

Elon Musk’s update

Amidst the conversations on X about the Model Y L, longtime FSD tester Whole Mars Catalog noted that Elon Musk would not be saying anything about the vehicle until its international release, likely because he would like to avoid an Osbourne Effect on the standard Model Y. Tesla’s sales today are still highly dependent on the standard Model Y, after all, as it is the company’s best-selling vehicle.

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Musk responded to the FSD tester, stating that the Model Y L will not start production in the United States until the end of 2026. He also noted that the vehicle might not even make it in America at all, considering Tesla’s focus on self-driving. “This variant of the Model Y doesn’t start production in the US until the end of next year. Might not ever, given the advent of self-driving in America,” Musk wrote in his post.

Musk’s post was received with much disappointment from many X users, some of whom joked that the CEO was risking alienating families with three kids with his comments. The Model Y L, after all, is a legitimate family car that can comfortably seat six, and it seemed like a vehicle that Musk would prioritize considering his stance on people having bigger families. Of course, the CEO might still just be preventing an Osbourne Effect with his comments, but it’s difficult to deny that a 2026 U.S. production date for the Model Y L is still disappointing.

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