Tesla CEO Elon Musk promised a “giant contract” to a nickel supplier during the Q2 2020 Earnings Call. The problem is that the company will have trouble finding an efficient and environmentally-friendly nickel mine, and it could prove to be Tesla’s biggest challenge yet.
Nickel is a crucial metal in electric vehicle batteries because it can increase energy density and provide cars with more range. Musk stated during the Earnings Call that nickel-based cells are essential for the development of larger vehicles, like the Tesla Semi, for example. “Where every unit of mass that you add in battery pack, you have to subtract in cargo,” he said. “So it’s very important to have a mass efficient and long-range pack.”
Nickel-based cells would give Tesla an advantage in electric vehicle range, a category where the company already leads by a sizeable margin. However, with new vehicles on the way, cells have to be adjusted to work with specific workloads. The Semi is an excellent example of this.
Nickel could replace cobalt in Tesla’s current battery cells. Cobalt, a controversial element on its own, is responsible for stabilizing the cell and has been effective in increasing the safety of the high-energy batteries that Tesla has used. However, the mining process of cobalt is questionable, and mines which can obtain it likely are using child labor, which is highly illegal. It also is not environmentally-friendly to mine.
Tesla has taken extra steps to ensure that its cobalt suppliers are treating their workers humanely through a series of due diligence checks. Third-party companies complete random visits to these mines a few times a year to ensure that the cobalt Tesla is using in its batteries is humanely obtained.
The problem is: Nickel mining isn’t much different. Although it would be advantageous, safer, and provide more range for Tesla’s vehicles, it is tough to find nickel that is environmentally-friendly and responsibly mines. The largest nickel sources are in Indonesia, where millions of tonnes of waste are dumped into the sea, polluting coral reefs and damaging the homes of turtles.
Analysts believe that Indonesian miners will provide nearly all of the growth of nickel supplies over the next decade. With electric cars becoming more popular, batteries will be a large part of the surge in demand for the metal. Still, it is also used in everyday products, like stainless steel appliances, Financial Times says.
Other countries, like Canada and Australia, have nickel mines, but Indonesia is highly concentrated with it.
Steven Brown, a consultant and former employee at nickel mining company Vale, says that it could be challenging for customers who are environmentally-conscious to want products that contain the metal after hearing how some entities dispose of it.
“It could undermine the entire proposition of trying to sell a consumer a product that is environmentally friendly, if you have this back story,” he said.
Even though other countries have nickel available, the increased demand for EVs will require large automakers, like Tesla, to eventually have to source some of the metal from Indonesia. “At some point, it will happen where they can’t avoid Indonesian nickel,” Brown added.
Luckily, Tesla requires its sources to go through due diligence processes, and it is unlikely the company will steer away from them to obtain nickel. Of course, Tesla will benefit from having more nickel, but it has to be sourced responsibly for the company even to consider using it.
On top of that, nickel is the second most expensive metal in EV batteries. It only trails cobalt, which Tesla has worked intensively to get away from because of its environmental and humanitarian impact.
“We use very little cobalt in our system already, and that’s — that may to zero along, so it’s basically about nickel,” Musk said.
There is a delicate balance between positive environmental impact after EVs hit the road and the harmful impact sourcing some of the metals have. However, the automakers do not assume any of the responsibility for the mining companies’ process of getting rid of waste. But it is their responsibility to choose a company that decides to handle the ridding of environmentally-harming materials responsibly.
Tesla has made it a point to choose companies that share their mission for sustainability because the automaker realizes that building an electric car starts with sourcing the materials. If the materials are not responsibly obtained, then the EV isn’t as Earth-friendly as it could be.
Pius Ginting, an environmental activist, summed it up perfectly: “The net result is we have clean air in our cities — but then we destroy a rich biodiversity area.”
News
Tesla launches record-breaking 830 km CLTC range Model 3 in China
The long-range rear-wheel-drive Model 3 is expected to begin deliveries in September.
Tesla has officially unveiled its longest-range vehicle to date in China: a new Model 3 variant capable of traveling up to 830 CLTC kilometers (515 miles) on a single charge.
Priced from RMB 269,500 ($37,490), the single-motor, long-range rear-wheel-drive Model 3 is expected to begin deliveries in September.
The new Model 3 RWD at a glance
Equipped with a 78.4 kWh battery pack from LG Energy Solution, the new Model 3 variant surpasses the current Model 3 long-range all-wheel-drive version’s 753 CLTC-kilometer (468-mile) range and sets a new benchmark for the company’s global lineup. It can accelerate from 0 to 100 km/h in 5.2 seconds and has a top speed of 200 km/h.
The launch expands Tesla’s Model 3 offerings in China to four versions. The lineup now includes the entry-level rear-wheel drive variant, which is powered by CATL lithium iron phosphate batteries and starts at RMB 235,500, as well as the dual-motor long-range all-wheel-drive and performance all-wheel-drive versions priced at RMB 285,500 and RMB 339,500, respectively.
Improved range upgrades
Tesla confirmed on Weibo that all Model 3 versions in China have now received range upgrades this year, part of a broader strategy to refresh its lineup. The company is launching the new variant amid intensifying competition in China’s electric vehicle market.
From January to July, Tesla delivered 304,027 vehicles in China, a 6.32 percent decline year-on-year. The drop was driven largely by the Model Y’s sales of 202,257 units, which fell 17.15%, as noted in a CNEV Post report. The Model 3’s sales rose 26.54% to 101,770 units during the same period. To boost sales, Tesla is offering incentives on most Model 3 trims, including five years of interest-free financing, an RMB 8,000 discount on paint, and an RMB 8,000 insurance subsidy.
News
Tesla China insurance registrations hit Q3 high at 13,400 units
Year-to-date, Tesla’s China registrations are down 6.1% versus 2024 levels.
Tesla’s insurance registrations in China surged to 13,400 units for the week of August 4–10, the highest weekly total so far in the third quarter of 2025. The figure represents a 21.8% increase from the prior week’s 11,000 registrations, as per industry tracking data.
Industry watchers weigh in
Data shared by industry watcher @piloly shows the latest week’s results were 21.8% higher than the previous week, though still down 13.5% year-over-year. After six weeks of Q3 2025, Tesla’s China registrations are tracking 70.9% higher quarter-over-quarter compared to Q2, but remain 11.0% below the same period in Q3 2024. Year-to-date, Tesla’s China registrations are down 6.1% versus 2024 levels.
Tesla China does not release its weekly domestic sales figures, though the company’s overall performance in the country can be inferred through insurance registration data. Fortunately, these registrations are closely tracked by industry watchers as well as automakers such as Li Auto.
More momentum
The August performance so far indicates Tesla may be regaining some momentum after a slower start to the year. Tesla’s sales figures this year have generally lagged behind 2024, thanks in no small part to the company’s changeover to the new Model Y, which was implemented in the United States, China, and Germany.
Tesla China seems to be doing what it can to attract as many customers as possible this quarter. Tesla recently launched a new long-range Model 3 variant in China with a CLTC-rated range of 830 km, as noted in a CNEV Post report. Priced at RMB 269,500 ($37,490), the model is about 14.44% more expensive than the entry-level version and becomes the longest-range Tesla on sale in the market. Tesla is also expected to launch the six-seat Model Y L in China this fall.
Cybertruck
Tesla clears the air on Cybertruck ‘deactivation’ video that is obviously fake
Tesla has cleared the air on the viral video, stating it is fake.
Tesla has cleared the air regarding a video that has been circulating, where the owner claims his Cybertruck was “deactivated” by the company while he was driving.
The video was shared on X and showed a driver pulled over on the side of the road, claiming his Cybertruck had been deactivated by Tesla in the middle of traffic. It is very obviously fake to those who know the company, but these kinds of things have a tendency to pick up steam.
This video is going viral of a Cybertruck “de-activated” in the middle of the road. What’s wild is a lot of people are believing it. People’s hate for Tesla and Elon Musk seems to shadow their critical thinking skills.
It’s likely a YouTube video or something just playing on… pic.twitter.com/HJr00Umjbu
— Jeremy Judkins (@jeremyjudkins_) August 11, 2025
The video shows a screen that says:
“Tesla Cybertruck De-Activated. Critical Issue Detected | Contact Customer Service, Comply with Cease & Desist to Re-Activate. Update Failed, Return to Dealer.”
The same person who posted the video also shared an image of what appears to be a Cease and Desist letter from Tesla, but it is also likely fake:
He also claims Tesla sent him a cease and desist letter because he made a song titled Cybertruck or something like that.
That’s why the error message in the video mentions a cease and desist. 🤣 pic.twitter.com/1zdtGApEfj
— Jeremy Judkins (@jeremyjudkins_) August 11, 2025
The company finally responded to the video on Monday afternoon, stating that the video is, in fact, fake, reiterating that it will not disable vehicles remotely for any reason.
This is fake – that’s not our screen.
Tesla does NOT disable vehicles remotely. https://t.co/QFOLG74AJI
— Tesla (@Tesla) August 11, 2025
It is a shame that these types of things happen, especially as people are prone to believe anything they see on the internet. As there is so much misinformation circulating surrounding Tesla and its CEO Elon Musk, it is no surprise that someone would leverage the situation for their own benefit.
If that Cease and Desist letter is not real, perhaps the next one might be. These types of things can truly cause damage to a company’s reputation, and someone getting an idea that Tesla would remotely deactivate a car could prevent them from buying one.
Tesla launches record-breaking 830 km CLTC range Model 3 in China
Tesla China insurance registrations hit Q3 high at 13,400 units
Tesla clears the air on Cybertruck ‘deactivation’ video that is obviously fake
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