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Tesla & CATL deemed the Power Couple to Recharge the US EV Market: Morgan Stanley

(Credit: Tesla)

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Morgan Stanley analyst Adam Jonas deemed Tesla and CATL the power couple that could recharge the United States electric vehicle (EV) market. 

In a note released earlier this week, Morgan Stanley writes that the United States is an under-penetrated EV market, whereas China is a fully-penetrated EV market. In addition, the United States has an under-supply of affordable EVs and cheap batteries for electric vehicles. Meanwhile, China has an oversupply of affordable EVs and cells in the battery market. 

The current political climate between the United States and China discourages Chinese battery suppliers like CATL from distributing their oversupply of batteries to the US. Even Europe is leaning towards domestically sourcing and supplying battery cells for electric vehicles. 

“In our view, this will require a degree of ‘westernization’ of Chinese tech to be palatable in the US given the rising protectionist sentiment (both in the US and Europe). At the same time, China is experiencing an over-supply in EV batteries and is seeking a conduit to offload (‘off-ramp’) supply via export opportunities,” wrote Morgan Stanley in its note

China-based battery supplier CATL might have found a way to offload its EV batteries to OEMs in the United States through Licensing, Royalty, and Services (LRS). Tesla seems to be the first company to collaborate with CATL through LRS. 

People familiar with the matter recently shared that Tesla and CATL are collaborating to develop a new fast-charging battery. Tesla also plans to use battery machines from CATL at Giga Nevada, which is currently in the midst of an expansion. 

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Morgan Stanley’s Adam Jonas sees great potential in Tesla and CATL’s recent collaboration. 

“In our view, Tesla is in a very strong position to ‘on-ramp’ Chinese EV tech to the US. In leveraging Chinese manufacturing know-how, Tesla can deliver a $25,000 EV (Model 2) and drive EV adoption in the US.

The investment bank reiterated its Overweight rating and $320 price point for TSLA. Despite its forecast about the TSLA-CATL power couple, Morgan Stanley still acknowledges the challenges to EV demand in the near term. However, it still predicts that Tesla will be a winner in EVs long-term.

If you have any tips, contact me at maria@teslarati.com or via X @Writer_01001101.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Elon Musk confirms cryptic X post was related to SpaceX, not TSLA stock

Musk shared his update in a post on social media platform X.

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Joel Kowsky, Public domain, via Wikimedia Commons

Elon Musk has confirmed that a cryptic post he shared earlier this month was related to his private sale enterprise, SpaceX, not electric vehicle maker Tesla. 

Musk shared his update in a post on social media platform X. 

Musk’s cryptic post

Earlier this month, the CEO posted the cryptic words “You’ll Thank Me Later” on X. The post quickly gained attention on social media, as Tesla watchers and Elon Musk fans speculated on what the words could mean. With the announcement that Musk has purchased $1 billion of TSLA stock in the open market, some speculated that the cryptic post was a teaser of sorts to shareholders.

Musk’s massive TSLA purchase was the biggest in history, and it also stood as a notable vote of confidence for the company as it attempts to enter a new era led by robots, AI, and autonomous driving. This was likely one of the reasons why Tesla stock saw a notable rise on Monday’s trading. In another post, however, Musk confirmed that his cryptic post was not in any way related to his stock purchase.

All SpaceX

Considering that all the words in Musk’s post started with an uppercase letter, some space fans immediately speculated that the CEO was teasing something related to SpaceX. The company’s three drone ships, Just Read the Instructions (JRTI), Of Course I Still Love You (OCISLY), and A Shortfall of Gravitas (ASOG), after all, follow similar naming styles. 

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This was one of the reasons why some TSLA shareholders noted on X that Musk’s post was likely SpaceX-related. In response to one of these comments, Musk stated that these speculations are “Correct.”

The only question now is what exactly Musk was referring to in his post. Perhaps the CEO really was hinting at the name of the drone ship that will be tasked to retrieve Starship in the middle of the ocean.

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Tesla Model Y leads as weekly registrations in China hit Q3 high

Out of Tesla China’s 15,350 registrations, the Model Y once again accounted for the majority.

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Credit: Tesla China

Tesla recorded 15,350 insurance registrations in China during the week of September 8–14, marking a 7.3% increase compared to the prior week. The figure also represents the highest weekly result so far in the third quarter of 2025.

Model Y still leads demand

Out of the 15,350 registrations, the Model Y once again accounted for the majority. Data shows 9,460 registrations for the standard Model Y, complemented by 1,030 units of the newly launched extended wheelbase, six-seat Model Y L. Tesla also logged 4,860 Model 3 sedans for the week as well, as noted in a CNEV Post report.

The Model Y L, which debuted in late August, registered a modest uptick from the 900 registrations it saw the week before. Volumes remain relatively low, suggesting that the variant will not meaningfully change Tesla’s third-quarter sales trajectory. That being said, Tesla China’s previous comments about the Model Y L’s demand suggest that an uptick in registrations may be coming in the next weeks.

The ramp of the Model Y L will likely be a notable topic among Tesla watchers, as its ramp will still be quite a task despite the vehicle being just a new variant of the all-electric crossover. With this in mind, meaningful numbers of Model Y L registrations may hit their pace in the next quarter instead.

Tesla China’s momentum

As per data from the China Passenger Car Association (CPCA), Tesla’s retail sales in August 2025 totaled 57,152 units. That figure marked a 9.9% decline from August 2024’s 63,456 units, but a significant 40.7% increase from July’s 40,617 deliveries.

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Quarter-to-date, Tesla China’s results show a 34.4% gain compared to the previous quarter but remain down 11% year-over-year. Year-to-date, Tesla is down about 7% in China versus the same period in 2024. With only a couple more weeks before the end of the third quarter, Tesla China’s registrations may help determine whether the company could catch up to its 2024 numbers this year. 

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Tesla Supercharger access has proven to be a challenge for one company

Interestingly, it seems to be the Volkswagen brand specifically that is having issues with compatibility with Tesla Superchargers. Other brands under the VW umbrella, like Audi and Porsche, have already gained access to the charging network.

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Credit: MarcoRP | X

Tesla Supercharger access has proven to be quite the challenge for one company, as it continues to delay the date that it will enable its owners to charge at the most expansive network in the world.

Tesla Superchargers have been opening up to other brands for well over a year, and many car companies that are manufacturing electric vehicles now have access to the vast network that has over 70,000 locations worldwide.

Tesla to launch Supercharger access for VW owners later this year

However, one brand has experienced some issues with what it is calling “technical challenges,” specifically failing to enable cross-compatibility between its vehicles and Tesla Superchargers.

Volkswagen has had to delay its ability to enable customers to charge at Superchargers because there have been some difficulties getting things to run smoothly. A report from PCMag cites a quote from a Volkswagen spokesperson who said there are still plans to deliver this year, but there have been some delays:

“Volkswagen looks forward to making it possible for ID. Buzz and ID.4 vehicle owners to gain access to the Tesla NACS Partner Superchargers. The timeline has been delayed by technical challenges, and we ask for customers’ patience. We still expect to deliver access this year.”

Interestingly, it seems to be the Volkswagen brand specifically that is having issues with compatibility with Tesla Superchargers. Other brands under the VW umbrella, like Audi and Porsche, have already gained access to the charging network.

Volkswagen EV owners will need to use an official VW adapter to access the Tesla Supercharger Network once the issues are resolved. It still plans to launch access to its owners later this year, but its spokesperson did not announce any planned timeline.

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