News
Volvo seals twin battery supply deal to ramp Tesla competitors like the Polestar 2
Volvo has signed a multi-billion dollar supply deal with two major battery manufacturers in an effort to ramp its electric vehicle transition efforts.
The Swedish luxury vehicle company has contracted with China-based CATL (Contemporary Amperex Technology Co Ltd) and LG Chem in Korea to supply the lithium-ion batteries for its upcoming electric vehicle (EV) fleets under both its own brand and under its Polestar joint venture with Geely. Volvo expects 50% of its global sales volume to comprise electric vehicles by 2025, and this latest deal is a nod towards that bigger picture.
LG Chem already supplies batteries to most of the world’s largest car brands, including Volkswagen, Mercedes, and Renault, and it plans to increase its current production capacity to 100 GWh per year by 2020 in order to meet the growing demand driven by EV developments. CATL, on the other hand, is already China’s biggest EV battery manufacturer and its newest factory is aiming for a 25 GWh per year production capacity. In contrast, Tesla’s Gigafactory 1 in Sparks, Nevada has already reached 35 GWh capacity with its Japanese battery supply partner Panasonic, albeit that level is still theoretical. The actual output is around 24 GWh annually.
Tesla’s relationship with Panasonic is different than the traditional supplier relationship other car makers have with their battery manufacturers, namely in that they are partners. This way, Tesla has a reliable supply of batteries to manufacture its vehicles, and Panasonic has a guaranteed buyer. When battery supply and the car production rates are matched, both companies experience a win-win situation, and they can work together effectively to ensure that best outcome for both parties. Panasonic currently produces the 18650 battery cells used in the Model S and Model X and the 21700 cells utilized in the Model 3.
Volvo’s decision to transform Polestar into a high-performance, stand-alone brand came in 2017, and the launch of the all-electric Polestar 2 fastback in February this year officially put the company in the running as a direct Tesla Model 3 competitor. The Polestar 2 is equipped with dual motors which produce over 400 hp and power the car from 0-60 mph in under 5 seconds. However, this doesn’t quite match up to the Model 3 Performance’s 450 hp and 0-60 time of 3.2 seconds at the same price point – both cars are offered for around $60,000.
Tesla’s battery ranges also increased significantly for all new vehicles since the Polestar 2 unveiling, which means more innovation in battery efficiency will be in order if Volvo and Geely truly want to compete against the Model 3. Polestar’s 78 kWh battery is estimated to have a 275 mile range while the Model 3 Performance is rated for 310 miles of range. That particular variation might not be where Polestar has the most competition, though. The Model 3 Long Range keeps the 310 mile range, has a 0-60 mph time of 4.4 seconds, and has a price point of about $50,000, all stats which outperform Polestar 2’s announced capabilities for a much lower cost to consumers.
Overall, however, Volvo’s new deal with LG Chem and CATL indicates that the company is serious about electrifying its fleet, and competition is good for innovation all around. Polestar 2 is set to begin production in 2020.
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Tesla Energy has introduced the Powerwall Lease in conjunction with Tesla Electric, making the service available in Texas. This new option delivers whole-home backup power using two Powerwall units for a net monthly cost of $35 after credits, accompanied by a low fixed electricity rate.
Under the lease terms, customers pay a one-time order fee of $100. The base lease payment for the two Powerwalls is approximately $122 per month during the first year, subject to a 3 percent annual escalator thereafter. Enrollment in a qualifying Tesla Electric Backup plan or Virtual Power Plant plan provides an $87 monthly credit.
Powerwall Lease is now available with Tesla Electric in Texas
Whole-home backup for $35/month, with a low fixed electricity rate
– Two Powerwalls, $0 installation
– Storm Watch outage protection
– One app to manage it all pic.twitter.com/oTzqc6K3aF— Tesla Energy (@teslaenergy) August 13, 2026
This credit lowers the effective cost to roughly $35 per month plus applicable tax.
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Installation of the standard system carries no additional charge. The package features Storm Watch for outage protection and allows complete management through a single Tesla application. The system supplies continuous whole-home backup capability.
The Powerwall system enables households to maintain electricity during severe storms that disrupt the utility grid. When outages occur, the batteries automatically provide seamless backup power to the home.
Tesla announces 100k Powerwalls are participating in Virtual Power Plants
Tesla Storm Watch monitors weather forecasts and ensures the units are fully charged ahead of anticipated severe weather events so that power remains available throughout the disruption, keeping lights, refrigeration, and other essential systems operating without interruption.
Availability is restricted to select Texas locations where retail electric choice exists. Participants must lease exactly two Powerwall units and maintain continuous enrollment with Tesla Electric. Solar panels cannot be included under this particular lease arrangement.
The monthly credit activates automatically once the system is installed, receives permission to operate, and enrollment is confirmed. To retain the credit, customers are required to stay enrolled in Tesla Electric and fulfill all program conditions.
Nonstandard installations that involve electrical upgrades or special permitting may lead to extra expenses and might impact eligibility for the credit, so be sure to check with either your installer or Tesla to ensure you will still qualify.
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Elon Musk continues to tease the unveiling event for the Tesla Roadster, a continuing trend that has grown into a bigger game of “When” for fans who have been waiting years for the car to finally enter production.
A video shared on X of the Joe Rogan Experience podcast that Musk appeared on last year, teasing the Roadster unveiling, was shared once again on the social media platform. The poster said the Roadster event will be “unforgettable.”
Musk agreed:
Yes
— Elon Musk (@elonmusk) August 12, 2026
The timing is interesting because just yesterday, Musk said that we will be getting flying cars, and for years, Tesla has hinted that it could develop a SpaceX cold gas thruster package that would help the car float or fly for a short period of time.
It would be reasonable to assume Tesla’s major delays with this unveiling event are likely caused by the company’s need to break the rules and push the envelope on nearly everything. Last July, Lars Moravy, Tesla’s VP of Vehicle Engineering, said:
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“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind blowing. We showed Elon some cool demos last week of the tech we’ve been working on and he got a little excited.”
The latest updates that Tesla has given us are that the Roadster is in design development, and it did have several potential dates for an unveiling event this year, including April. It was then pushed to August.
However, there are no clues as to when Tesla will be ready, and fans are certainly getting frustrated with the delays.
For what it is worth, Franz von Holzhausen told Jay Leno this week that the event would be “very soon.”
We sure hope.
Lifestyle
Tesla’s driverless Cybercab just passed a big test with State Governor
Florida’s governor rode Tesla’s Cybercab at a closed test track and called the experience impressive.
Florida Governor Ron DeSantis rode in a Tesla Cybercab on a closed test track this week and came away impressed, posting on X that the vehicle “successfully navigated all hazards — a kid running into the street, a crash with police stopping traffic, a Model S cutting us off, etc.” He called the ride “impressive.”
The stop was part of a broader event Monday at SunTrax, a 775 acre state owned proving ground in Auburndale that Florida built specifically to test autonomous and connected vehicles before they reach public roads. Standing next to a gold Cybercab, DeSantis described the car in plain terms: “You go in there and you just sit. You have a screen. There’s no steering wheel, no pedals. Clearly these things could be very beneficial.”
We took a ride on a robotaxi on the Suntrax course and it successfully navigated all hazards — a kid running into the street, a crash with police stopping traffic, a Model S cutting us off, etc.
Impressive! https://t.co/FVAkzFLz3r
— Ron DeSantis (@RonDeSantis) August 11, 2026
DeSantis paired the praise with a caveat that has followed autonomous vehicles since the category existed. “You don’t want to be in an autonomous vehicle and it drives you into a ditch. That would not be good,” he said, framing safety validation as the gate before wider deployment.
SunTrax, the 2.25 mile oval which the state calls the only high speed autonomous vehicle test track in the Southeast, can simulate rain, pedestrian crossings, hills and crowded urban conditions at highway speeds, letting companies push a car past what an early public rollout would risk. Tesla, Waymo and Beep all use the facility, and Florida’s regulatory approach, among the most permissive for autonomous vehicles in the country, doesn’t require a human operator inside a fully autonomous car.
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Tesla has reason to want the blessing of Florida and states beyond, as the Cybercab entered volume production at Gigafactory Texas this spring and has since self certified as SAE Level 4 under Texas law. Public road testing so far has kept a safety monitor in the passenger seat, and Florida is where Tesla has been expanding its existing Model Y based Robotaxi service instead, adding Miami in July and then Orlando and Tampa two weeks later. A closed track endorsement from a sitting governor doesn’t change any of that, but it does put Tesla’s newest hardware in front of a state that has already shown it will move fast on rules.
Tesla launches Powerwall Lease for affordable home backup
Elon Musk teases Tesla Roadster unveiling once again
