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.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla has expanded the footprint of a massive safety feature worldwide with a recent Software Update labeled as 2026.20.6. The expansion of the “Blind Spot Warning While Parked” feature represents the more widespread availability of the feature, which aims to prevent “dooring.”
Dooring is when a driver or passenger opens a car door into the path of an oncoming road user, usually a cyclist or motorcyclist. It is among the most common types of cycling accidents, the League of American Bicyclists says.
For this reason, Tesla created a feature that warns occupants not to open the door because an object is approaching. The feature will sound a chime, and it will also delay the opening of the door to prevent an incident.
The release notes state (via Not a Tesla App):
“If you attempt to open a door while an approaching object is detected in your blind spot (for example, a bicyclist approaching from behind) a chime sounds, and your door will not open upon initial button press. Wait a short time and press the button a second time to override the warning.”
Tesla initially rolled out this feature back in 2024 with the Model 3 “Highland.” However, it remained with the Model 3 exclusively for over a year; that was until Tesla added it to the Cybertruck this past Spring.
Now, it is making its way to the new Model Y, 2021 and newer Model S, and 2021 or newer Model X.
The prevention of dooring incidents could eliminate many injuries to cyclists, especially in an urban setting. Dooring accounts for 10-20 percent of bike-related crashes in major cities, and over 17,000 dooring-related incidents were treated in the U.S. over the course of a decade. These usually involve fractures, contusions, and head trauma.
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
SpaceX gets initial stock coverage from Tesla’s biggest bull
