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Tesla in talks with new LFP cell supplier for low-cost battery deal: report
Tesla is reportedly in talks with Chinese battery maker EVE Energy Co for a potential supply deal for low-cost batteries. EVE’s batteries will reportedly be used to boost Gigafactory Shanghai’s supply chain, as per information related to Reuters by individuals familiar with the matter.
EVE is noted for producing lithium iron phosphate (LFP) cells, which are affordable to produce but generally have lower density than NCA (nickel cobalt aluminum) batteries, which Tesla also uses. Tesla is already using LFP batteries for its vehicles such as the Made-in-China Model 3 Standard Range Plus currently produced in Gigafactory Shanghai. Tesla’s LFP batteries have so far been supplied by Contemporary Amperex Technology Co (CATL).
EVE Energy could then become Tesla’s second supplier for LFP batteries. Reuters‘ sources, who have opted to remain anonymous, also noted that the talks between the EV maker and the battery supplier are already advanced, with Tesla looking to finalize the partnership in the third quarter.
One of the news outlet’s sources also noted that EVE Energy is now running some final-stage tests for the LFP batteries that Tesla would potentially use. So far, however, neither EVE nor Tesla has issued a comment about the potential battery supply deal.
Tesla CEO Elon Musk has been pretty open about the company’s need to secure more battery supply. This is despite the fact that Tesla itself is making its own batteries in the form of its custom 4680 cells, which are expected to be used in vehicles like the Made-in-Germany Model Y, the Cybertruck, the Semi, and possibly the Model S Plaid+.
This was highlighted in the fourth quarter and full-year 2020 earnings call. “I want to be really clear, Tesla wants to increase purchases from cell suppliers. And we’ve been very clear with our cell suppliers, whether it be CATL or Panasonic or LG, that we will take as many batteries as they can produce. So — and we urge them to increase their production, and we will buy as much as they can send to us,” Elon Musk said.
A greater supply for low-cost batteries in China would likely play a role in improving Tesla’s capability to produce more of its base vehicles in Gigafactory Shanghai. CATL’s LFP cells are already being used in the Model 3 Standard Range Plus. EVE’s cells may then be used in more affordable variants of the Made-in-China Model Y, or perhaps even the $25,000 car that’s expected to be unveiled soon.
With EVE Energy as a supplier, Tesla could take a step towards its goal of producing 20 million vehicles across the globe per year before 2030.
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News
Tesla FSD (Supervised) could be approved in the Netherlands next month: Musk
Musk shared the update during a recent interview at Giga Berlin.
Tesla CEO Elon Musk shared that Full Self-Driving (FSD) could receive regulatory approval in the Netherlands as soon as March 20, potentially marking a major step forward for Tesla’s advanced driver-assistance rollout in Europe.
Musk shared the update during a recent interview at Giga Berlin, noting that the date was provided by local authorities.
“Tesla has the most advanced real-world AI, and hopefully, it will be approved soon in Europe. We’re told by the authorities that March 20th, it’ll be approved in the Netherlands,’ what I was told,” Musk stated.
“Hopefully, that date remains the same. But I think people in Europe are going to be pretty blown away by how good the Tesla car AI is in being able to drive.”
Tesla’s FSD system relies on vision-based neural networks trained on real-world driving data, allowing vehicles to navigate using cameras and AI rather than traditional sensor-heavy solutions.
The performance of FSD Supervised has so far been impressive. As per Tesla’s safety report, Full Self-Driving Supervised has already traveled 8.3 billion miles. So far, vehicles operating with FSD Supervised engaged recorded one major collision every 5,300,676 miles.
In comparison, Teslas driven manually with Active Safety systems recorded one major collision every 2,175,763 miles, while Teslas driven manually without Active Safety recorded one major collision every 855,132 miles. The U.S. average during the same period was one major collision every 660,164 miles.
If approval is granted on March 20, the Netherlands could become the first European market to greenlight Tesla’s latest supervised FSD (Supervised) software under updated regulatory frameworks. Tesla has been working to secure expanded FSD access across Europe, where regulatory standards differ significantly from those in the United States. Approval in the Netherlands would likely serve as a foundation for broader EU adoption, though additional country-level clearances may still be required.
Elon Musk
Elon Musk estimates Tesla Semi could reach Europe next year
“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” Musk said.
Tesla is preparing to expand its all-electric Semi truck program to Europe, with CEO Elon Musk indicating that the Class 8 vehicle could arrive in the region 2027.
Musk shared his update during an interview about Giga Berlin with plant manager André Thierig, which was posted on X by the official Tesla Manufacturing account.
“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” he said.
Tesla has already begun limited production and customer deployments of the Tesla Semi in the United States, with the company working to scale output through the Semi factory near Giga Nevada. Considering Musk’s comments, it appears that a European rollout would be the next phase of the vehicle’s expansion beyond North America.
Musk’s use of the word “hopefully” leaves room for flexibility, but the remark signals that Europe is next in Tesla’s commercial expansion plans.
Musk has consistently argued that electrification should extend beyond passenger vehicles. During the same interview, he reiterated his view that “all ground transport should be electric,” adding that ships, and eventually aircraft, would follow.
The Semi plays a central role in that strategy. Heavy-duty freight remains one of the most emissions-intensive segments of road transport, and European regulators have increasingly pushed for lower-emission commercial fleets.
Tesla recently refreshed the Semi lineup on its official website, listing two variants: Standard and Long Range. The Standard trim offers up to 325 miles of range with an energy consumption rating of 1.7 kWh per mile, while the Long Range version provides up to 500 miles, which should be more than ample for European routes.
Elon Musk
Tesla Cybercab coming next to Giga Berlin, Optimus possibly after
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said.
Tesla could add the Cybercab and Optimus humanoid robot to the production lineup at Giga Berlin, as per recent comments from CEO Elon Musk.
During a recent interview with Giga Berlin plant manager André Thierig, Musk identified the Cybercab as the most likely next major product for the German factory, with Optimus potentially following after.
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said. He added that there are also “possibilities of Tesla Optimus” being produced in the facility.
Tesla has already begun production of the Cybercab in Giga Texas, with volume production expected to ramp this year. Based on Musk’s comments, it appears that if conditions align in Europe, Giga Berlin could eventually join that effort.
The CEO’s comments about Optimus coming to Gigafactory Berlin are quite unsurprising too considering that Musk has mentioned in the past that the humanoid robot will likely be Tesla’s highest volume product in the long run.
Giga Berlin will likely be able to produce mass volumes of Optimus, as the Model S and Model X lines being converted to an Optimus line in the Fremont Factory are already expected to produce 1 million units of the humanoid robot annually.
Apart from his comments about the Cybercab and Optimus, Elon Musk also confirmed that Giga Berlin has started ramping battery cell production and will continue expanding Model Y output, particularly as supervised Full Self-Driving (FSD) gains regulatory approvals in Europe.
Taken together, the remarks suggest Berlin’s role could evolve beyond vehicle assembly into a broader multi-product manufacturing hub, not just a regional Model Y plant.