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Tesla China signs contract with LG Chem for Model Y production

Tesla Model Y (Credit: Teslarati)

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Tesla China has signed a contract with Korea’s top battery supplier LG Chem for Model Y production. Based on local media, LG Chem will supply NCM batteries for the Made-in-China Model Y Dual-Motor Long Range and Performance variants. 

Tesla enthusiast @Ray4Tesla reported the upcoming  partnership between Giga Shanghai and LG Chem. He also speculated that China’s top battery supplier CATL may supply Lithium-Iron-Phosphate (LFP) batteries for Giga Shanghai’s Model Y Standard Range Plus variant, similar to how the company supplies cells for the Model 3 Standard Range Plus. 

Earlier this month, Giga Shanghai’s Model Y was officially registered with China’s Ministry of Industry and Information Technology (MIIT). Tesla’s Gigafactory in Asia just has to wait for a production permit to mass produce the Model Y. 

LG Chem’s contribution to Giga Shanghai’s production will improve the factory’s chances of reaching Tesla China’s 550,000 goal for 2021. Giga Shanghai aims to produce 250,000 Model Y vehicles next year. Given that 2021 will be the first year Giga Shanghai attempts to produce the Model Y, building 250,000 units of Tesla’s SUV is quite a goal.

However, if the Shanghai Gigafactory is successful, Tesla could produce 1 million cars in one year in 2021, crossing yet another milestone in the company’s history. 

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Out of its 550k target, Giga Shanghai plans to produce 300,000 Model 3 units in 2021. It seems Tesla China has already hit 91% of its ambitious targets next year, based on the fact that it produced 22,292 Model 3 vehicles in October alone. According to Troy Teslike, at a production run rate of 22,929 a month, Giga Shanghai could product 275,148 cars a year. 

LG Chem’s contribution to Giga Shanghai’s production will improve the factory’s chances of reaching Tesla China’s 550,000 goal for 2021. Giga Shanghai aims to produce 250,000 Model Y vehicles next year. Given that 2021 will be the first year Giga Shanghai attempts to produce the Model Y, building 250,000 units of Tesla’s SUV is quite a goal. However, if the Shanghai Gigafactory is successful, Tesla could produce 1 million cars next year, crossing yet another milestone in the company’s history. 

Out of its 550k target, Giga Shanghai plans to produce 300,000 Model 3 units in 2021. It seems Tesla China has already hit 91% of its ambitious targets next year, based on the fact that it produced 22,292 Model 3 vehicles in October alone. According to Troy Teslike, at a production run rate of 22,929 a month, Giga Shanghai could product 275,148 cars a year. 

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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Tesla ramps production of its ‘new’ models at Giga Texas

The vehicles are being built at Tesla Gigafactory Texas in Austin, and there are plenty of units being built at the factory, based on a recent flyover by drone operator and plant observer Joe Tegtmeyer.

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Credit: Joe Tegtmeyer | X

Tesla is ramping up production of its ‘new’ Model Y Standard at Gigafactory Texas just over a week after it first announced the vehicle on October 7.

Earlier this month, Tesla launched the Tesla Model 3 and Model Y “Standard,” their release of what it calls its affordable models. They are priced under $40,000, and although there was some noise surrounding the skepticism that they’re actually “affordable,” it appears things have been moving in the right direction.

The vehicles are being built at Tesla Gigafactory Texas in Austin, and there are plenty of units being built at the factory, based on a recent flyover by drone operator and plant observer Joe Tegtmeyer:

The new Standard Tesla models are technically the company’s response to losing the $7,500 EV tax credit, which significantly impacts any company manufacturing electric vehicles.

However, it seems the loss of the credit is impacting others much more than it is Tesla.

As General Motors and Ford are scaling back their EV efforts because it is beginning to hurt their checkbooks, Tesla is moving forward with its roadmap to catalyze annual growth from a delivery perspective. While GM, Ford, and Stellantis are all known for their vehicles, Tesla is known for its prowess as a car company, an AI company, and a Robotics entity.

Elon Musk was right all along about Tesla’s rivals and EV subsidies

Tesla should have other vehicles coming in the next few years, especially as the Cybercab is evidently moving along with its preliminary processes, like crash testing and overall operational assessment.

It has been spotted at the Fremont Factory several times over the past couple of weeks, hinting that the vehicle could begin production sometime next year.

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Tesla set to be impacted greatly in one of its strongest markets

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tesla norway
Credit: Robert O. Akander-Lima/LinkedIn

Tesla could be greatly impacted in one of its strongest markets as the government is ready to eliminate a main subsidy for electric vehicles over the next two years.

In Norway, EV concentrations are among the strongest in the world, with over 98 percent of all new cars sold in September being electric powertrains. This has been a long-standing trend in the Nordic region, as countries like Iceland and Sweden are also highly inclined to buy EVs.

Tesla Model Y leads sales rush in Norway in August 2025

However, the Norwegian government is ready to abandon a subsidy program it has in place, as it has effectively achieved what it set out to do: turn consumers to sustainability.

This week, Norway’s Finance Minister, Jens Stoltenberg, said it is time to consider phasing out the benefits that are given to those consumers who choose to buy an EV.

Stoltenberg said this week (via Reuters):

“We have had a goal that all new passenger cars should be electric by 2025, and … we can say that the goal has been achieved. Therefore, the time is ripe to phase out the benefits.”

EV subsidies in Norway include reduced value-added tax (VAT) on cheaper models, lower road and toll fees, and even free parking in some areas.

The government also launched programs that would reduce taxes for companies and fleets. Individuals are also exempt from the annual circulation tax and fuel-related taxes.

In 2026, changes will already be made. Norway will lower its EV tax exemption to any vehicle priced at over 300,000 crowns ($29,789.40), down from the current 500,000, which equates to about $49,500.

Tesla Superchargers most liked by Norway EV drivers

This would eliminate each of the Tesla Model Y’s trim levels from tax exemption status. In 2027, the VAT exemptions will be completely removed. Not a single EV on the market will be able to help owners escape from tax-exempt status.

There is some pushback on the potential loss of subsidies and benefits, and some groups believe that the loss of the programs will regress the progress EVs have made.

Christina Bu, head of the Norwegian EV Association, said:

“I worry that sudden and major changes will make more people choose fossil-fuel cars again, and I think everyone agrees that we don’t want to go back there.”

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Elon Musk

Elon Musk was right all along about Tesla’s rivals and EV subsidies

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elon musk
Credit: @Gf4Tesla/Twitter

With the loss of the $7,500 Electric Vehicle Tax Credit, it looks as if Tesla CEO Elon Musk was right all along.

As the tax credit’s loss starts to take effect, car companies that have long relied on the $7,500 credit to create sales for themselves are starting to adjust their strategies for sales and their overall transition to electrification.

On Tuesday, General Motors announced it would include a $1.6 billion charge in its upcoming quarterly earnings results from its EV investments.

Ford said in late September that it expects demand for its EVs to be cut in half. Stellantis is abandoning its plan to have only EVs being produced in Europe by 2030, and Chrysler, a brand under the Stellantis umbrella, is bailing on lofty EV sales targets here in the U.S.

How Tesla could benefit from the ‘Big Beautiful Bill’ that axes EV subsidies

The tax credit and EV subsidies have achieved what many of us believed they were doing: masking car companies from the truth about their EV demand. Simply put, their products are not priced attractively enough for what they offer, and there is no true advantage to buying EVs developed by legacy companies.

These tax credits have helped companies simply compete with Tesla, nothing more and nothing less. Without them, their products likely would not have done as well as they have. That’s why these companies are now suddenly backtracking.

It’s something Elon Musk has said all along.

Back in January, during the Q4 and Full Year 2024 Earnings Call, Musk said:

“I think it would be devastating for our competitors and for Tesla slightly. But, long term, it probably actually helps Tesla, that would be my guess.”

In July of last year, Musk said on X:

“Take away all the subsidies. It will only help Tesla.”

Over the past few years, Tesla has started to lose its market share in the U.S., mostly because more companies have entered the EV manufacturing market and more models are being offered.

Nobody has been able to make a sizeable dent in what Tesla has done, and although its market share has gotten smaller, it still holds nearly half of all EV sales in the U.S.

Tesla’s EV Market Share in the U.S. By Year

    • 2020 – 79%
    • 2021 – 72%
    • 2022 – 62%
    • 2023 – 55%
    • 2024 – 49%

As others are adjusting to what they believe will be tempered demand for their EVs, Tesla has just reported its strongest quarter in company history, with just shy of half a million deliveries.

Will Tesla thrive without the EV tax credit? Five reasons why they might

Although Tesla benefited from the EV tax credit, particularly last quarter, some believe it will have a small impact since it has been lost. The company has many other focuses, with its main priority appearing to be autonomy and AI.

One thing is for sure: Musk was right.

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