Tesla quietly revealed in its Q1 report that nearly half the vehicles it produced in the first quarter of 2022 were equipped with cobalt-free lithium iron phosphate (LFP) batteries. The news, however, was overshadowed in the news cycle, particularly by Tesla’s $19 billion revenue and CEO Elon Musk’s acquisition of social media platform Twitter.
LFP batteries are not a new innovation, but it has not been used as much in areas outside China. According to data from Benchmark Mineral Intelligence (BMI), only 3% of electric vehicle batteries in the United States and Canada and 6% in the European Union are iron-based. In China, however, LFP batteries command 44% of the EV market.
Tesla currently uses LFP batteries in its base vehicles, though Elon Musk has hinted that the EV company will be using more cobalt-free cells in more products. Considering the prolific nature of Tesla and its influence on the market, it would not be surprising if other EV makers also began exploring the option of using LFP batteries for their own cars.
Amusingly enough, by playing a notable part in LFP battery adoption, it appears that Elon Musk has effectively become an “iron man” of sorts.
According to a Reuters review of the EV market, Tesla is not alone in its support for LFP batteries. Over a dozen companies are reportedly considering building LFP battery cell plants in the United States and Europe in the next three years. And things will likely only pick up from there. Mujeeb Ijaz, the founder of US battery startup Our Next Energy, noted that LFP has a future in the EV industry.
“I think lithium iron phosphate has a new life. It has a clear and long-term advantage for the electric vehicle industry,” he said.
There was a reason why LFP batteries took this long to gain ground. While LFP cells use cheaper materials, and while they could be consistently charged fully without much degradation, they tend to be larger, heavier, and generally hold less energy than nickel-cobalt-manganese (NCM) cells. Thus, electric cars that use LFP batteries tend to have shorter range.
Tesla’s decision to use LFP batteries for its base vehicles could be considered a strategic move. Since the company is electively the undisputed leader in the electric vehicle sector, the roughly 150,000 cars it produced last quarter that were equipped with LFP batteries took a number of analysts and specialists by surprise. And similar to other innovations from the company, such as its use of megacasts, it appears that other carmakers will soon be following suit.
EV startup Fisker, for one, noted that it is planning on using LFP batteries for its lower-range SUVs. CEO Henrik Fisker noted that the company is in discussions with battery suppliers from the United States, Canada, or Mexico. Fisker noted that LFP batteries are perfect for vehicles that are used by city-dwellers.
“If I never leave Los Angeles, I never leave San Francisco, I never leave London … I think that’s where LFP comes in really well,” he said.
Audi CEO Markus Duesmann, in comments that were shared last March, also spoke highly of LFP cells’ potential. “It may well be that we will see LFP in a larger portion of the fleet in the medium term. After the war, a new situation will emerge; we will adapt to that and choose battery technologies and specifications accordingly,” he said.
Even BMW, which is arguably lagging in the electric vehicle race considering the pace of rivals such as Volkswagen and Daimler, is looking towards LFP batteries. Recent comments from BMW chief procurement officer Joachim Post indicated that the German automaker was analyzing the merits of iron-based cells. “We’re looking at different technologies to minimize the use of resources and also we’re looking at optimizing chemistry,” the executive said.
*Quotes courtesy of Reuters.
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Tesla China extends its 7-year financing promotion once more
The move marks Tesla’s second extension of the program this year.
Tesla has extended its seven-year ultra-low-interest and five-year interest-free financing programs in China once more, pushing the offers through March 31, the end of the first quarter.
The move marks Tesla’s second extension of the program this year. The financing plan was first introduced on January 6 as a strategy aimed at offsetting higher ownership costs ahead of China’s planned 5% NEV purchase tax in 2026.
The original promotion was set to expire at the end of January but was extended to the end of February. This has now been extended again through March.
The repeated extensions reflect growing competitive pressure. Tesla’s 2025 retail sales in China totaled 625,698 units, representing a 4.78% year-on-year decline, as per data compiled by CNEV Post. That being said, this decline is partly caused by the Model Y’s changeover to its new variant in Q1 2025, which resulted in lower sales during the quarter.
In early 2026, the Model Y also lost its position as China’s top-selling EV in January to Xiaomi’s YU7, though this was also a month when Tesla primarily exported vehicles to foreign territories, which pushed local delivery numbers lower.
During January 2026, Tesla China exported 50,644 vehicles, roughly 1.7 times higher than the same month a year ago and more than 15 times higher than December’s level.
Tesla’s financing push has not gone unanswered. BYD this week introduced its own seven-year low-interest plan across its Ocean lineup and Fang Cheng Bao sub-brand, also valid through March 31. Other competitors including NIO, XPeng, Li Auto, and Geely Auto have already rolled out extended-term loan programs as well.
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Tesla China focuses on local deliveries as Q1 enters final month
Tesla’s estimated delivery times for all variants of the Model 3 and Model Y in China were listed at just one to three weeks.
Tesla’s delivery wait times in China have dropped to some of their shortest levels in years, an apparent hint that Giga Shanghai has largely cleared its order backlog and currently has strong production capacity.
As of February 26, estimated delivery times for all variants of the Model 3 and Model Y in China were listed at just one to three weeks, as per observations of Tesla China’s official webpages by CNEV Post.
That marks a notable shift from the several-week or even two-month waits seen late last year.
The one-to-three-week delivery window suggests that Giga Shanghai is likely focusing on the local market, at least for now as the company enters the final month of the first quarter. Tesla China typically spends the first half of the quarter catering to markets that import vehicles from Giga Shanghai.
Historically, when Tesla’s wait times in China compress to their shortest levels, the company often follows with fresh market actions.
In past cycles, shortened delivery timelines were followed by promotional activity. After delivery windows narrowed to one to three weeks in early 2024, for example, Tesla later introduced an RMB 10,000 instant discount on Model Y final payments that year.
To spur local demand, Tesla recently extended its seven-year ultra-low-interest and five-year interest-free financing offers through March 31. This marks the second extension of the policy this year.
So far, posts from the Tesla community suggest that interest in the company’s vehicles among consumers in China is still strong. Videos of busy delivery centers across China have been shared on social media.
China’s competitive EV landscape has evolved as of late. With regulators discouraging aggressive price wars, automakers are increasingly leaning on financing incentives instead of direct price cuts. Major players including BYD, NIO, XPeng, and Li Auto have introduced similar loan extensions and promotional financing packages.
Elon Musk
Elon Musk’s The Boring Company closes Tunnel Vision Challenge
The Tunnel Vision Challenge invited individuals, companies, and governments to propose a tunnel project up to one mile long.
Elon Musk’s The Boring Company has officially closed submissions for its Tunnel Vision Challenge, confirming that a total of 487 entries were received before the deadline.
In a post on X, the company wrote, “Tunnel Vision Challenge is closed! 487 entries received – TBC team is excited to go through them all!” The company added that “We will select the top ~15 in the next week, and reach out with follow-up questions,” and that an “overall winner will be announced on March 23.”
The Tunnel Vision Challenge invited individuals, companies, and governments to propose a tunnel project up to one mile long with a 12-foot inner diameter. The winning entry will have its tunnel constructed free of charge.
Submissions could range from Loop passenger tunnels to freight, pedestrian, utility, or water tunnels. The only requirement was that the project clearly demonstrate how tunneling would meaningfully improve transportation or infrastructure between two points.
Just days before the deadline, the company provided an interim update noting that 407 entries had already been received. “Update on the Tunnel Vision Challenge – 1 mile of free tunnel! With 3 days left to submit, 407 entries have been received. Great to see enthusiasm for tunnels!” The Boring Company wrote at the time on X. By the close of submissions, the total had grown closer to 500 entries, hinting at strong interest in underground transportation solutions.
Entries are being evaluated on usefulness, stakeholder engagement, and technical, economic, and regulatory feasibility. Applicants were required to quantify projected benefits, such as time saved per rider or cost savings per shipment, and provide maps showing proposed alignments and other details. Submissions that included geotechnical or subsurface data are expected to receive additional consideration.
The Boring Company will fund the tunnel’s construction itself, though related infrastructure costs may be discussed with the winning team. The company also retains discretion to modify or cancel the challenge.
Tesla China extends its 7-year financing promotion once more
Tesla China focuses on local deliveries as Q1 enters final month
