By GAO Jing
Rumors regarding a shake-up in the partnership between CATL and Tesla have had an immediate and adverse effect on CATL’s share price, which fell over 5 percent during early trading on June 5.
CATL addressed the murmurs, saying that news of them discontinuing supplies to Tesla in North America is false. The battery manufacturer’s collaboration with Tesla remains “unwavering. Moreover, CATL batteries have not been subjected to any form of US sanctions.
Meanwhile, Tesla’s latest website update added another layer of intrigue to the unfolding narrative. All variants of the Model 3 series in the US are now eligible for a federal tax credit of US$7,500 per vehicle for qualifying customers. The unexpected development has led to speculation that Tesla is exploring alternative battery suppliers
CATL’s annual report show Tesla as the largest client, with lithium battery sales amounting to a staggering 38 billion yuan (about US$ 5.3 billion), an impressive 11.59 percent of CATL’s total revenue.
CATL commenced collaboration with Tesla in July 2020. In 2021, Tesla became CATL’s primary customer, procuring lithium batteries worth 13 billion yuan, 10 percent of CATL’s revenue.
A meeting between Tesla’s CEO, Elon Musk, and CATL’s President, Robin ZENG Yuqun, during Musk’s visit to Beijing has fueled speculation.
As this saga unfolds, all eyes are on the ever-evolving dynamics between CATL and Tesla. While the alterations in their partnership have yet to materialize, the market remains on tenterhooks.
