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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.
Tesla has officially launched the Model Y L in the United States and Puerto Rico for $61,990. It is the longer-wheelbase version of the Model Y, and has been available in China since last year.
Tesla brings the Model Y L to the U.S. just months after it phased out the only pure SUV in its lineup, the Model X. It is slightly longer than the Model Y configurations that are already available in the U.S., and features a three-row, six-seat setup with Captain’s Chairs being among the many features that make this a truly fantastic offering.
The Model Y L is priced competitively at $61,990, and features 325 miles of range and a 0-60 MPH in just 4.4 seconds.
Tesla also added a handful of new features that are not available in even the Premium Model Y. Here’s a full list of its features:
- Heated/Ventilated Front Seats with Powered Thigh Cushion
- Heated/Ventilated Captain’s Seats in Second Row with Powered Armrests & One-Touch Fold
- Heated Third-Row Seats with Power Recline, One-Touch Fold & Child Seat Anchors
- Improved Airflow, Increased Efficiency, More Range
- 89 cubic feet of trunk space
- Upgraded Acoustic Glass and Suspension to Minimize Road Noise
- Adaptive Damping for a Smooth, Stable Ride
- Staggered Tires for Enhanced Grip
- Larger Tailgate for Better Rear Visibility and Bigger Windows Overall
- 16″ First Row and 8″ Second Row Touchscreens
- 19-Speaker Immersive Tesla Audio
- 50W Wireless Charging Pads with Active Cooling and Charging Ports for All Other Seats
- FSD Supervised and Integrated Grok AI
Tesla is also delivering these first units as a “Launch Series,” which comes with additional features, such as:
- Door Trim Puddle Lights
- Suede Dashboard Wing
- Exterior and Interior Badging
- Floor Mats
- Sill Plates
The launch of the Model Y L in the U.S. marks a huge offering from Tesla to U.S. consumers. People have been calling for Tesla to bring a larger car to the U.S., and it needed it more than ever now that the Model X is gone.
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- Credit: Tesla
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- Credit: Tesla
It is a huge accomplishment for Tesla to get the Model Y L to the U.S., and after reporting strong deliveries today, it will be interesting to see how this car impacts future quarterly delivery reports.
Deliveries for the Model Y L “Launch Series” are slated for September or October of this year.
Tesla just told us twice that the Model Y L is coming to the U.S., and two social media posts definitely just tipped the company’s hand, as if they wanted it to be any other way.
The two social media posts basically confirm that the slightly longer version of the Model Y will be heading to the United States soon, and many have speculated that the company could launch the vehicle as soon as this weekend.
The first post was directly from Tesla, and it showed an incredibly long Dachshund, with words above that said, “Looking forward to the long weekend.”
Looking forward to the long weekend pic.twitter.com/URzH6zOUdn
— Tesla (@Tesla) July 1, 2026
Anyone who knows Tesla knows the company loves to troll its fans and have fun, and this is a perfect example of that. While not a direct acknowledgement, Tesla is very involved on social media, especially CEO Elon Musk’s platform X, and the company is well aware of what is being discussed within the community.
With recent sightings of Model Y L test mules in California, peeks of the vehicle at Giga Texas, and a large call for the car to come to the U.S., Tesla is simply stoking conversation with this.
However, the company also made another move that was recognized on social media. Tesla has a large gallery that includes photos of its products so media and others can use them. This gallery applies to the U.S. market specifically, unless otherwise specified.
Tesla uploaded a Model Y L to the Gallery last night:
This looks like a Model Y L https://t.co/TpnBwrLmH9
— TESLARATI (@Teslarati) July 2, 2026
This seems to be another indication that the Model Y L is coming to the United States.
Musk said last year that the Model Y L could make its way to the United States late this year, but it was not something that was set in stone by Tesla. The company definitely needs to establish something in the SUV market that is larger than the Model Y, and the Model Y L might be the answer.
Even still, there are consumers out there who would love Tesla to develop something even larger, like a competitor to the Tahoe or Expedition. Tesla has not really given much of an indication that it will go in that direction.
Tesla is using the vehicles’ internal microphones to improve build quality, Vice President of Engineering Lars Moravy revealed recently.
It’s no secret that Tesla is always finding ways to make its manufacturing operations more efficient, accurate, and valuable. Constantly trying to make its cars better, the company has never placed any restrictions on what it will do to improve everything from panel gaps to paint.
As Teslas have been driving autonomously on the property of the Gigafactory Texas plant for a while now, Moravy revealed to Herbert Ong in a new interview that cars rolling off production lines now autonomously navigate themselves through a bumps, squeaks, and rattles (BSR) portion of the line. This helps to identify any loose or improperly installed internal parts.
The cabin’s microphones, which are used for a variety of things in ownership, simultaneously monitor any noises inside the vehicle while it rolls through the BSR portion of the production line. Moravy actually revealed that Tesla is trying to build “Full Self-Hearing,” an AI system that will detect minor imperfections so they can be corrected before delivery.
It’s no secret that build quality is something that Tesla struggled with as it scaled to a fully massive production operation that manufactures over 1.6 million vehicles per year. However, in recent years, especially, there have not been as many complaints. Tesla has truly improved upon its build quality and paint quality over the past several years, especially in the U.S.
Tesla’s ‘megacasts’ are key to massive build quality improvements
While those improvements have been evident, there are still some complaints; no automaker is perfect with this. But this step will now ensure that every single car that rolls off the production lines at Gigafactory Texas will be void of any creaks, squeaks, or squeals when it leaves the factory.
This measure is one of the most unique we’ve seen in terms of a strategy to avoid build quality issues, but it is not exclusive to Tesla.
Ford uses acoustic analysis AI to find abnormalities in seat motors, climate control units, and other components. Suppliers and OEMs will also use microphone arrays or particle velocity sensors in end-of-line stations.
The full interview with Lars Moravy is available below:
🚨 If you’re a Tesla investor, this is one interview you don’t want to skip. The full video posted below.
Jeff Lutz @thejefflutz and I sat down with Tesla VP of Engineering Lars Moravy, and it was packed with insights!
A few of the biggest takeaways:
• Cybercab is expected to… pic.twitter.com/fhYSr2dCqP
— Herbert Ong (@herbertong) July 1, 2026
Tesla brings Model Y L ‘Launch Series’ to the U.S. at $61,990
Tesla just told us twice that Model Y L is coming to the U.S.
