Chairman Zeng Yuqun of Tesla battery supplier Contemporary Amperex Technology Limited (CATL) discussed the company’s new M3P battery at the World New Energy Vehicle Congress in Beijing last week. CATL expects M3P batteries to have increased energy density by 10% to 20%.
With the M3P battery, CATL cells could increase an electric vehicle’s range to 700 km or 430 miles. M3P batteries will be made from new materials that CATL states will lower the costs of the cells compared to nickel and cobalt-based batteries.
CATL aims to increase its lead over its rivals like LG Energy Solution and BYD. The M3P battery cell might help the Chinese battery supplier achieve its goals.
M3P in Tesla Giga Shanghai Cars
Early last month, rumors floated around in China that Tesla Giga Shanghai would launch new Model 3 and Model Y variants with CATL’s M3P batteries. Currently, Giga Shanghai vehicles use CATL’s lithium phosphate batteries.
As of this writing, Tesla China’s website states the Model 3 has cruising ranges between 556 km (345 miles) and 675 km (419 miles), based on the China Light-Duty Vehicle Test Cycle (CLTC) standard. CLTC estimates are usually higher than WLTP and mNEDC numbers in Europe. The MIC Model Y has a cruising range between 545 km (338 miles) and 660 km (410 miles), according to CLTC.
China Improving Battery Supply Chain
Representatives at the 2022 World New Energy Vehicle Congress in Beijing brought up concerns about emissions from manufacturing plants and the rising costs of raw materials during the event.
According to Bloomberg, executives at the conference encouraged the Chinese government to follow international emission standards regarding local manufacturing processes. CATL Chairman Zeng noted that China lagged behind other countries regarding emissions from manufacturers.
The representatives suggested that the Chinese government invest more in low energy-consumption products and encourage companies to upgrade production facilities to improve emissions. They also mentioned the idea of establishing an up-to-date carbon-emission database.
Representatives also talked about rising raw material costs. “We are all working for the miners,” said SAIC Motor Corp Ltd. Chairman Chen Hong.
Car makers worldwide have increased their products’ prices due to rising raw material and logistics costs. Top EV maker Tesla has been affected as well. Executives at the 2022 World New Energy Vehicle Congress suggested that China further develops battery recycling businesses to combat some raw material costs affecting carmakers.
The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101.
Elon Musk
Tesla reveals it is using AI to make factories more sustainable: here’s how
Tesla is using AI in its Gigafactory Nevada factory to improve HVAC efficiency.

Tesla has revealed in its Extended Impact Report for 2024 that it is using Artificial Intelligence (AI) to enable its factories to be more sustainable. One example it used was its achievement of managing “the majority of the HVAC infrastructure at Gigafactory Nevada is now AI-controlled” last year.
In a commitment to becoming more efficient and making its production as eco-friendly as possible, Tesla has been working for years to find solutions to reduce energy consumption in its factories.
For example, in 2023, Tesla implemented optimization controls in the plastics and paint shops located at Gigafactory Texas, which increased the efficiency of natural gas consumption. Tesla plans to phase out natural gas use across its factories eventually, but for now, it prioritizes work to reduce emissions from that energy source specifically.
It also uses Hygrometric Control Logic for Air Handling Units at Giafactory Berlin, resulting in 17,000 MWh in energy savings each year. At Gigafactory Nevada, Tesla saves 9.5 GWh of energy through the use of N-Methylpyrrolidone refineries when extracting critical raw material.
Perhaps the most interesting way Tesla is conserving energy is through the use of AI at Gigafactory Nevada, as it describes its use of AI to reduce energy demand:
“In 2023, AI Control for HVAC was expanded from Nevada and Texas to now include our Berlin-Brandenburg and Fremont factories. AI Control policy enables HVAC systems within each factory to work together to process sensor data, model factory dynamics, and apply control actions that safely minimize the energy required to support production. In 2024, this system achieved two milestones: the majority of HVAC infrastructure at Gigafactory Nevada is now AI-controlled, reducing fan and thermal energy demand; and the AI algorithm was extended to manage entire chiller plants, creating a closed-loop control system that optimizes both chilled water consumption and the energy required for its generation, all while maintaining factory conditions.”
Tesla utilizes AI Control “primarily on systems that heat or cool critical factory production spaces and equipment.” AI Control communicates with the preexisting standard control logic of each system, and any issues can be resolved by quickly reverting back to standard control. There were none in 2024.
Tesla says that it is utilizing AI to drive impact at its factories, and it has proven to be a valuable tool in reducing energy consumption at one of its facilities.
Elon Musk
Tesla analysts believe Musk and Trump feud will pass
Tesla CEO Elon Musk and U.S. President Donald Trump’s feud shall pass, several bulls say.

Tesla analysts are breaking down the current feud between CEO Elon Musk and U.S. President Donald Trump, as the two continue to disagree on the “Big Beautiful Bill” and its impact on the country’s national debt.
Musk, who headed the Department of Government Efficiency (DOGE) under the Trump Administration, left his post in May. Soon thereafter, he and President Trump entered a very public and verbal disagreement, where things turned sour. They reconciled to an extent, and things seemed to be in the past.
However, the second disagreement between the two started on Monday, as Musk continued to push back on the “Big Beautiful Bill” that the Trump administration is attempting to sign into law. It would, by Musk’s estimation, increase spending and reverse the work DOGE did to trim the deficit.
Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!
And they will lose their primary next year if it is the last thing I do on this Earth.
— Elon Musk (@elonmusk) June 30, 2025
President Trump has hinted that DOGE could be “the monster” that “eats Elon,” threatening to end the subsidies that SpaceX and Tesla receive. Musk has not been opposed to ending government subsidies for companies, including his own, as long as they are all abolished.
How Tesla could benefit from the ‘Big Beautiful Bill’ that axes EV subsidies
Despite this contentious back-and-forth between the two, analysts are sharing their opinions now, and a few of the more bullish Tesla observers are convinced that this feud will pass, Trump and Musk will resolve their differences as they have before, and things will return to normal.
ARK Invest’s Cathie Wood said this morning that the feud between Musk and Trump is another example of “this too shall pass:”
BREAKING: CATHIE WOOD SAYS — ELON AND TRUMP FEUD “WILL PASS” 👀 $TSLA
She remains bullish ! pic.twitter.com/w5rW2gfCkx
— TheSonOfWalkley (@TheSonOfWalkley) July 1, 2025
Additionally, Wedbush’s Dan Ives, in a note to investors this morning, said that the situation “will settle:”
“We believe this situation will settle and at the end of the day Musk needs Trump and Trump needs Musk given the AI Arms Race going on between the US and China. The jabs between Musk and Trump will continue as the Budget rolls through Congress but Tesla investors want Musk to focus on driving Tesla and stop this political angle…which has turned into a life of its own in a roller coaster ride since the November elections.”
Tesla shares are down about 5 percent at 3:10 p.m. on the East Coast.
Elon Musk
Tesla scrambles after Musk sidekick exit, CEO takes over sales
Tesla CEO Elon Musk is reportedly overseeing sales in North America and Europe, Bloomberg reports.

Tesla scrambled its executives around following the exit of CEO Elon Musk’s sidekick last week, Omead Afshar. Afshar was relieved of his duties as Head of Sales for both North America and Europe.
Bloomberg is reporting that Musk is now overseeing both regions for sales, according to sources familiar with the matter. Afshar left the company last week, likely due to slow sales in both markets, ending a seven-year term with the electric automaker.
Tesla’s Omead Afshar, known as Elon Musk’s right-hand man, leaves company: reports
Afshar was promoted to the role late last year as Musk was becoming more involved in the road to the White House with President Donald Trump.
Afshar, whose LinkedIn account stated he was working within the “Office of the CEO,” was known as Musk’s right-hand man for years.
Additionally, Tom Zhu, currently the Senior Vice President of Automotive at Tesla, will oversee sales in Asia, according to the report.
It is a scramble by Tesla to get the company’s proven executives over the pain points the automaker has found halfway through the year. Sales are looking to be close to the 1.8 million vehicles the company delivered in both of the past two years.
Tesla is pivoting to pay more attention to the struggling automotive sales that it has felt over the past six months. Although it is still performing well and is the best-selling EV maker by a long way, it is struggling to find growth despite redesigning its vehicles and launching new tech and improvements within them.
The company is also looking to focus more on its deployment of autonomous tech, especially as it recently launched its Robotaxi platform in Austin just over a week ago.
However, while this is the long-term catalyst for Tesla, sales still need some work, and it appears the company’s strategy is to put its biggest guns on its biggest problems.
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