The automotive industry is fiercely competitive, with companies often vying for the same customers and market share. However, two unlikely partners have emerged in recent years: Tesla and BYD. While they were not always on friendly terms, the two companies have developed a close relationship that has led to several successful collaborations.
It was not long ago that Elon Musk, Tesla’s CEO, publicly laughed at BYD’s electric vehicles, but both companies have since emerged as EV powerhouses. While they were initially seen as competitors, the two companies began to work together last year when Tesla started purchasing battery cells from BYD.
Despite initial skepticism from the media, both Tesla and BYD have confirmed that their partnership is continuing. This news comes in response to a recent report from the Korean Economic Daily, which cited sources claiming that Tesla had decided not to renew its supply contract with BYD. However, both companies have denied the report.
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In fact, Elon Musk went so far as to say that the relationship between Tesla and BYD is “positive.” This is great news for Tesla, as BYD is one of the few battery suppliers that can supply LFP cells, a chemistry that Tesla is now heavily relying on for its cheaper vehicles.
BYD has developed expertise in LFP cells through its electric buses, which were among the primary vehicles to use the chemistry. While the technology is currently primarily produced and used in China, Tesla has begun to deploy it globally, and other automakers like Ford have started to follow suit.
