Tesla Inc's rapid adjustment of its battery supply chain means all of its Model 3 vehicles qualify for federal U.S. credits that, along with other tax breaks, could lower its price to less than a Toyota Camry.
Model 3 vehicles now qualify for $7,500 electric vehicle consumer tax credits after two versions were eligible for half the credits.
Tesla may have dropped CATL in favor of Panasonic for U.S.-made Model 3 Rear Wheel Drive, the cheapest version, Benchmark Mineral Intelligence analyst Caspar Rawles said. "It is highly likely it is Panasonic but there may be some concerns around cell availability if they need to supply enough for all U.S. Model 3s," he said.
Panasonic has a battery cell factory in Nevada, meeting federal requirements on local battery components. CATL and other suppliers like LG Energy SolutionWhen asked about Tesla and whether there had been a change in its supply arrangements to North America, CATL said, "The strategic partnership between the company and customers has not changed and will continue to deepen and improve."
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