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Tesla (TSLA) to Procure Batteries From LG Chem for Model Y
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Tesla (TSLA - Free Report) has signed a contract with South Korea’s top petrochemicals firm, LG Chem, per which the latter will solely supply rechargeable batteries for the Made-in-China Model Y Dual-Motor Long Range and Performance variants. The mass production of Model Y will commence in China next year.
LG Chem's plant already supplies batteries for Tesla's Model 3 sedan. The Model Y is an all-electric, mid-size SUV, with seating capacity up to seven, using cylindrical nickel, cobalt and manganese (NCM) batteries which LG Chem manufactures in Nanjing, China. It is the second model Tesla will manufacture at its Giga Factory in Shanghai, China, following the Model 3.
Earlier, it was being being speculated that the red-hot electric vehicle (EV) maker will pick China’s top battery supplier CATL or Japan’s Panasonic for supplying batteries for Model Y. However, with the latest contract, Tesla has ruled out both companies for supplying batteries for the Model Y.
Recently, Model Y — Tesla’s flagship model in China — was officially registered with the nation’s Ministry of Industry and Information Technology (MIIT). Tesla’s Giga Factory is waiting for a production permit to mass produce the Model Y.
LG Chem’s contribution to Giga Factory’s production will boost the factory’s chances of reaching Tesla China’s goal of manufacturing 550,000 units in 2021, out of which 250,000 Model Y vehicles need to be produced next year. Given that 2021 will be the first year Giga Shanghai attempts to produce the Model Y, building 250,000 units of Tesla’s SUV would be challenging.
However, if the Shanghai Giga Factory is able to meet its target, Tesla could produce 1 million cars in a year in 2021, marking another historic achievement for the company.
Tesla has revolutionized the EV space much the same way as Amazon has changed the retail landscape and Netflix transformed entertainment.
On Nov 16, Tesla secured a spot in the prestigious S&P 500 Index, effective Dec 21, before the market opens to coincide with the December quarterly re-balance. This admission marked a long-awaited historic achievement for the California-based automaker.
The news sparked a global buying frenzy throughout the EV sector. Consequently, shares of the company, which split five for one in August, have been soaring in value.
Tesla is the market leader in battery-powered electric car sales in the United States.
Other renowned automakers making aggressive efforts toward an electrified future are General Motors (GM - Free Report) , Ford (F - Free Report) and NIO Inc. (NIO - Free Report) .
Notably, shares of the company have soared 523.7%, year to date, compared with its industry’s rally of 192.2%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Tesla (TSLA) to Procure Batteries From LG Chem for Model Y
Tesla (TSLA - Free Report) has signed a contract with South Korea’s top petrochemicals firm, LG Chem, per which the latter will solely supply rechargeable batteries for the Made-in-China Model Y Dual-Motor Long Range and Performance variants. The mass production of Model Y will commence in China next year.
LG Chem's plant already supplies batteries for Tesla's Model 3 sedan. The Model Y is an all-electric, mid-size SUV, with seating capacity up to seven, using cylindrical nickel, cobalt and manganese (NCM) batteries which LG Chem manufactures in Nanjing, China. It is the second model Tesla will manufacture at its Giga Factory in Shanghai, China, following the Model 3.
Earlier, it was being being speculated that the red-hot electric vehicle (EV) maker will pick China’s top battery supplier CATL or Japan’s Panasonic for supplying batteries for Model Y. However, with the latest contract, Tesla has ruled out both companies for supplying batteries for the Model Y.
Recently, Model Y — Tesla’s flagship model in China — was officially registered with the nation’s Ministry of Industry and Information Technology (MIIT). Tesla’s Giga Factory is waiting for a production permit to mass produce the Model Y.
LG Chem’s contribution to Giga Factory’s production will boost the factory’s chances of reaching Tesla China’s goal of manufacturing 550,000 units in 2021, out of which 250,000 Model Y vehicles need to be produced next year. Given that 2021 will be the first year Giga Shanghai attempts to produce the Model Y, building 250,000 units of Tesla’s SUV would be challenging.
However, if the Shanghai Giga Factory is able to meet its target, Tesla could produce 1 million cars in a year in 2021, marking another historic achievement for the company.
Tesla has revolutionized the EV space much the same way as Amazon has changed the retail landscape and Netflix transformed entertainment.
On Nov 16, Tesla secured a spot in the prestigious S&P 500 Index, effective Dec 21, before the market opens to coincide with the December quarterly re-balance. This admission marked a long-awaited historic achievement for the California-based automaker.
The news sparked a global buying frenzy throughout the EV sector. Consequently, shares of the company, which split five for one in August, have been soaring in value.
Tesla is the market leader in battery-powered electric car sales in the United States.
Other renowned automakers making aggressive efforts toward an electrified future are General Motors (GM - Free Report) , Ford (F - Free Report) and NIO Inc. (NIO - Free Report) .
Tesla currently carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, shares of the company have soared 523.7%, year to date, compared with its industry’s rally of 192.2%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>