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

MIC Model 3 (Credit: Tesla China/Twitter)

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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.

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.

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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.

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 Cybercab tests seem to be ramping up again

Elon Musk has stated that he expects the company to achieve a run rate of 2 million Cybercabs annually.

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Credit: @serobinsonjr/X

Tesla seems to be ramping the tests of its autonomous two-seater, the Cybercab, once more. This was hinted at in recent drone footage from both the Fremont Factory and Gigafactory Texas.

The fresh sightings of the Cybercab in the Fremont Factory and Giga Texas have renewed conversations about the vehicle potentially being built with manual controls today. 

Fresh Cybercab tests

As noted by longtime drone operator Joe Tegtmeyer on social media platform X, he recently spotted a Cybercab driving on Giga Texas’ South River Road to the West side. Interestingly enough, the longtime Giga Texas watcher noted that this was the first Cybercab that he had seen conducting road tests in a while.

Over in the Fremont Factory, another Cybercab was spotted driving around the facility’s testing area. Similar to the Cybercab in the Giga Texas sighting, the vehicle that was spotted in the Fremont Factory seemed to be manually driven, at least based on the way it was being steered. This behavior has incited speculations among Tesla watchers that current Cybercab test units have manual controls, unlike their production version, which would have no steering wheel or pedals. 

Cybercab production preparation

The sightings of Cybercabs around the Fremont Factory and Giga Texas bode well for the vehicle’s development and impending production. It does, if any, complement reports that Tesla has been busy setting up production equipment for Giga Texas’ Cybercab production line. At the same time, drone footage around the Giga Texas complex has also revealed that Tesla is stockpiling some Cybercab castings, a likely sign that initial test production of the vehicle might soon begin.

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The Cybercab is expected to be Tesla’s highest volume vehicle, with CEO Elon Musk stating that he expects the company to achieve a run rate of 2 million Cybercabs annually. He also mentioned that the Cybercab will be easy to produce thanks to its Unboxed manufacturing process, so much so that its production would resemble a high-speed consumer electronics line instead of an automotive assembly line.

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Tesla FSD gets first rave reviews from media outlets in Japan

As per the publication, FSD demonstrated excellent situational awareness and smooth control, at times even performing better than a human driver.

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Credit: @BLKMDL3/X

Tesla FSD may continue to get flak from mainstream media outlets in the United States, but in other countries such as Japan, Full Self-Driving is being welcomed with much appreciation.

This is, at least, as per recent reviews from domestic media outlets that have tried out the capabilities of FSD on real-world roads.

FSD gets recognition

FSD was recently reviewed by Japanese news outlet Nikkei, which experienced the system’s capabilities in Tokyo’s metropolitan area. As per the publication, FSD demonstrated excellent situational awareness and smooth control, at times even performing better than a human driver. FSD was also credited for properly reacting to sudden, unexpected things on the road.

As per the FSD review, for example, a bicyclist suddenly came barreling into a crosswalk at high speed from the Tesla’s blind spot. The vehicle recognized the cyclist immediately and responded in a safe and proper manner, prompting the reviewer to exclaim “Wow!” And when a vehicle ahead of the Tesla started backing up to perform a turnaround on a narrow street unexpectedly, FSD smoothly halted to avoid a collision. Overall, the reviewer noted that during the 30-minute drive, the Tesla Model 3 running FSD did not require a single intervention. 

FSD’s impending Japan rollout

FSD is not yet rolled out in Japan, but the country seems to be paving the way for FSD to be released in the country. Just recently, reports emerged stating that Japan’s Land, Infrastructure, Transport and Tourism Ministry has allowed artificial intelligence-powered vehicles to be retrofitted with a software update that could enable the activation of their self-driving features.

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In a post on X, Tesla Board Member Hiro Mizuno noted that this decision is no small matter as it could pave the way for a smooth rollout of features like FSD to Tesla consumers in Japan. “The Ministry of Land, Infrastructure, Transport and Tourism’s decision to allow retrofitting of autonomous driving through software updates is significant. Currently, Tesla is the only manufacturer actively pursuing this… this decision will make it easier for all manufacturers to introduce autonomous driving in Japan,” the former Tesla Board member wrote in his post.

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Tesla extends Model Y L delivery estimates to December 2025

This suggests that the six-seat, all-electric crossover SUV has become fully sold out for both October and November.

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Credit: Tesla China

Tesla’s new extended-wheelbase Model Y L seems to be getting a lot of traction in China. As per Tesla China’s order page, the estimated delivery date for new vehicle orders is now listed as December 2025. 

This suggests that the six-seat, all-electric crossover SUV has become fully sold out for both October and November. This bodes well for the vehicle, considering that it is currently the most expensive trim of the Model Y available in China.

Model Y L demand

Launched in August and first delivered in September, the Model Y L seems to be gaining momentum among Chinese EV buyers who are looking for added space and flexibility in their family vehicles. The Model Y L features a six-seat configuration with a very comfortable second row and a third row that fits regular-sized adults. This makes it a good all-around family car. 

While the initial weeks of Model Y L insurance registrations were quite low, the vehicle’s registrations have been picking up in recent weeks. As per recent reports, the Model Y L’s volumes have been growing so much that the vehicle has helped boost Tesla China’s wholesale numbers in September. Even more Model Y L units would likely be registered this October. 

Strong local momentum

The Model Y L’s sellout streak highlights Tesla China’s continued strength in the world’s most competitive EV market. With new orders now having an estimated delivery date of December, it seems all but certain that Tesla China would be selling every Model Y L it produces this fourth quarter. This could then help bolster the company’s numbers this Q4 2025. 

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The Model Y L is only being sold in China for now, though the vehicle’s features and size would actually make it very competitive in markets where larger family EVs are in high demand. Priced from RMB 339,000 ($47,180), the crossover offers a blend of performance, practicality, and value that has seemingly struck a chord with consumers, both in China and potentially, even abroad.

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