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Tesla battery supply in China is ready to take a huge step forward

MIC Model 3 (Credit: Tesla China/Twitter)

Published

6 years ago

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Recent reports from China have suggested that Tesla battery partner Contemporary Amperex Technology Co Ltd. (CATL) is poised to ramp and provide the electric car maker with its cells in the second half of 2020. This update could become a valuable step towards the company’s localization of its supply chain, while opening the doors to the release of electric vehicles with batteries that have zero cobalt content.

A localized supply chain could very well be one of Tesla China’s key advantages in the country’s auto market. With more parts of the locally-made Model 3 being sourced from within the country, Tesla would be able to price the all-electric sedan in a much more competitive manner.

Estimates indicate that with a fully-localized supply chain, the Standard Range Plus Model 3 would only cost about RMB180,000 (about $25,500) to manufacture. Such a reduction in production costs could allow Tesla to lower the price of the locally-made Model 3 further. This bodes well for Tesla China, considering that the company has already been able to optimize the Model 3’s starting price to less than RMB300,000 to qualify for government incentives.

China is the world’s auto market, and it is also home to the world’s biggest electric car segment. This means that the country already has an established set of players in the EV market, and the competition among local automakers is intense. Tesla, being the only foreign carmaker that has been allowed to establish its own factory in China, will need to go blow-by-blow with local EV producers to compete well in the country.

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A good way for Tesla to accomplish this is to price its vehicles as aggressively as possible. Prior to the arrival of the Made in China Model 3, Teslas were widely considered as expensive electric vehicles that were intended for a niche market. The locally-made Model 3 changed this, as it allowed Tesla to reach a larger demographic. With every part of the vehicle’s production that is localized, the Made in China Model 3 becomes more competitive.

It’s not all about the Model 3’s price too. Reports have previously suggested that CATL will be providing Tesla China with lithium iron phosphate (LFP) batteries, which are cobalt-free. These batteries are reportedly cheaper by “double-digit” percent compared to the existing cells used in the company’s vehicles, and are more environmentally-friendly due to their zero cobalt content. If CATL’s upcoming battery ramp involves LFP cells for Tesla China, the locally-made Model 3 will likely become an even more compelling vehicle for local customers in the near future.

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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 Full Self-Driving v14.3.5 Early Impressions: new features and early performance

Published

1 hour ago

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July 14, 2026

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Credit: TESLARATI

Tesla rolled out Full Self-Driving (Supervised) v14.3.5 yesterday, and about fifty miles of driving on the new version has given me enough time to highlight what seems to be strong about the release and what is not.

Additionally, Tesla has added a few new features with this specific update, which we’ll highlight as well.

Tesla Full Self-Driving v14.3.5 Performance

The new update is business as usual. Things seem to be running completely normal and necessary, but there are a few things that we’ve seemed to pick up on based on our own experience with v14.3.5, as well as what other users are seeing.

Initially, it seems to be more aware of its surroundings, making moves that are incredibly courteous to other drives and operating just a tad more reserved than what the suite might have done previously.

We had two instances where it showed this, the first being FSD needing to pass a Flagger Force vehicle that was placing down signage for the day. Their work truck was right at the front corner of a right-hand turn; typically where most cars travel when they take that turn.

FSD v14.3.5 recognized this, slowed down, and took the turn wide with no issues:

Additionally, v14.3.5 backed up for a semi truck that was making a wide turn onto a road my car was on. This is not new, but it seemed to be backing up for courtesy; it didn’t seem completely necessary, but it might have put some peace of mind in the truck driver’s head:

X user Mike P, also a Pennsylvania native like myself, shared three clips of his Tesla running v14.3.5 performing similar maneuvers. He said:

“FSD turns right into a small alley that only fits one car at a time, sees oncoming car, reverses out of alley to make space, realizes oncoming car is actually parking, re-enters alley.”
Check it out here:

It seems like Speed Profiles are still in need of some tweaking; I am adjusting what Speed Profile I’m in frequently, constantly changing it to get it to travel at the correct speed. This was an issue for me on v14.3.4. It seems like they’re just a little inconsistent.

Terrible Parking

Parking attempts on v14.3.5 were not good. There are quite a few people who have said this:

David Moss, the Tesla owner who has taken multiple coast-to-coast drives without any interventions, also has had some issues with parking early on with v14.3.5:

New Features

Tesla has added the ability to open Camera Preview at any time. Previously, it was only available in Park. Here’s what that feature looks like in action:

Check back later this week for a longer review of what we’ve noticed on Full Self-Driving v14.3.5.

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Tesla makes the cut on California’s newest EV Rebate program

California just signed a $270 million EV rebate into law and it starts this summer.

Published

7 hours ago

on

July 13, 2026

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tesla fremont

California Governor Gavin Newsom signed SB 168 into law on Monday, July 13, 2026, creating a $270 million EV rebate program that delivers money directly at the dealership rather than as a tax credit applied months later. The program, called MyFirstEV, is funded equally by California’s state budget and participating automakers, with each contributing $135.5 million to make the math work.

The timing is directly tied to the loss of federal support when the $7,500 federal EV tax credit ended, removing the most significant consumer incentive that had driven EV adoption in the U.S. California, which accounts for roughly one-third of all EVs sold nationally, moved to fill that gap with a state-level replacement.

The rebate structure is straightforward. First-time EV buyers can receive $3,500 off any new battery-electric vehicle with an MSRP up to $50,000. Used EVs priced at $25,000 or below qualify for a $1,750 rebate. The credit is applied at the point of sale, which removes the friction of the old federal system where buyers had to wait for tax season to see the benefit. The program goes live later this summer, with the California Air Resources Board expected to release full participation details next month.

California hits Tesla Cybercab and Robotaxi driverless cars with new law

For Tesla buyers, the implications are mixed. The Tesla Model 3 RWD at $42,490 and the Model 3 Long Range at $47,490 both fall under the $50,000 cap and would qualify for the full $3,500 rebate for first-time buyers. The Model Y, which starts at $44,990 after Tesla’s recent price adjustment, also qualifies. The Model X, Model S, and Cybertruck all exceed the cap and receive no benefit. As Teslarati has reported, the program also includes a carve-out exempting California-based automakers like Rivian and Lucid from the price cap entirely, a provision that puts Tesla at a disadvantage since it relocated its headquarters to Texas in 2021.

Other qualifying vehicles include the Chevrolet Equinox EV, Ford Mustang Mach-E, Hyundai Ioniq 5, Kia EV6, and Volkswagen ID.4.

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Tesla Semi enters new Pilot Program with interesting challenge

Published

19 hours ago

on

July 13, 2026

By

Credit: PTI

The Tesla Semi is entering a new Pilot Program with Paper Transport, LLC (PTI), a Wisconsin-based transportation provider. The company will test the Semi’s Long Range configuration through “dedicated operations within the Chicago market.”

Chicago presents an interesting challenge for the Semi, as it will be a colder-weather climate that will test the Semi’s ability to operate in lower temperatures and in potentially large accumulations of snow. This is something Tesla has been testing with the Semi in Alaska and even in Northern California during the colder months, but Chicago will present a truly tough midwestern winter.

Tesla Semi spotted on journey home after winter performance testing

PTI says it is using the Semi to evaluate its strategy of reducing transportation emissions while maintaining performance, reliability, and cost efficiency. These are major arguments for the Semi being introduced into new fleets.

CEO of PTI Tyler Ellison said:

“PTI has been a leader in sustainable transportation solutions for over 15 years. We take a consultative approach to helping customers identify and implement the right transportation solution for their network. Our partnership with Tesla expands our portfolio alongside renewable natural gas and intermodal, giving customers more ways to reduce Scope 3 emissions without compromising service or economics.”

PTI is far from the first company to adopt the Semi within a fleet, as Tesla entered strategic agreements with PepsiCo. and its subsidiary Frito-Lay for a Pilot Program that extended throughout the California region.

Tesla has let companies like those utilize the Semi to determine whether it would be suitable for their operations. Additionally, Tesla gets valuable information regarding the Semi’s performance, knowing what to improve and what is ideal for companies that will utilize the all-electric truck for regional and nationwide logistics.

PTI plans to utilize the Long Range configuration, which is priced at $290,000 and features a range of approximately 500 miles, a three-motor powertrain, up to 800 kW of drive power, and consumption of just 1.7 kWh per mile.

Tesla Semi pricing revealed after company uncovers trim levels

VP of Maintenance at PTI, Bryan Ellen, added:

“We are excited to partner with Tesla, leveraging their ever-evolving technology. We are bullish in our estimation of the parallels available between our dedicated model and the efficiency of their fully electric Class 8 tractor. We anticipate a growing synergy between our businesses as we work to facilitate this sustainable solution for our customers.”

PTI has logged more than 87 million miles using sources like compressed and renewable gas, but now is looking to take it a step further with fully electric operations.

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