Tesla's standard continued version of Model 3gamy is fully equipped with lithium iron phosphate battery market and will be supplied by BYD.

Tesla released in the three quarterly reports of lithium iron phosphate battery favor, once again triggered the market speculation about battery suppliers.

In the quarterly report for 2021 released on October 20, local time, Tesla said that the standard versions of Model 3 and Moderl Y are being gradually adjusted to carry lithium iron phosphate batteries, covering the global market, while long-lasting models will continue to use ternary lithium batteries. Tesla's statement means that lithium iron phosphate batteries will be used in both the standard Model 3 / Y models produced by its US factories and future European factories. Combined with previous market news, BYD, which already has a factory in the United States, has a better chance of winning. " Industry insiders close to BYD revealed that Tesla, the fixed point of BYD, has almost landed.

BYD said it would not comment on this statement.

In early August this year, a reporter from the Financial Associated Press had an exclusive report that BYD would supply "blade batteries" to Tesla in the second quarter of next year. Although BYD also said "no comment", but the follow-up news indicates that BYD "blade battery" may first be installed in Model Y.

Industry insiders believe that Tesla's recognition of lithium iron phosphate battery technology may be due to reducing the cost of spare parts without increasing the price of the vehicle, so as to further improve the profit margin of the vehicle, while also providing consumers with a choice. According to the financial report, in the third quarter of 2021, Tesla achieved revenue of 13.76 billion US dollars, an increase of 57 percent over the same period last year, and the market expected 13.914 billion US dollars. The adjusted net profit was 1.618 billion US dollars, an increase of 389 percent over the same period last year, and the company's second-quarter profit exceeded 1 billion US dollars. The market is expected to be 1.825 billion US dollars.

The hot sale of Model3/Y has become the main factor for Tesla to achieve a big increase in net profit in the third quarter. According to the data, Tesla Model3/Y delivered 232102 vehicles in the third quarter, an increase of 87 per cent over the same period last year, accounting for 96 per cent of the total deliveries of Teslat in the current period.

Tesla also said in his three quarterly reports that car deliveries are expected to grow by an average of 50 per cent a year over the next few years, while the goal is to produce the first ModelY at plants in Berlin and Austin, Texas, by the end of this year. In addition, Tesla said that the Fremont factory in California has produced more cars in the past 12 months than in any previous year, but there is still room for improvement.

The Fremont factory is the production plant of Tesla Model3/Y in the United States. With Tesla's statement on lithium iron phosphate batteries in the three quarterly reports, it means that the standard endurance version of Model3/Y produced by this factory will also be equipped with lithium iron phosphate batteries.

It is widely believed that whether it is a plant in Fremont, Calif., or a plant in Austin, Texas, for cost reasons, it should follow the principle of local matching, and it is unlikely to transport cells or battery packs by sea. BYD, which has a power battery factory in the United States, undoubtedly has an advantage.

According to public information, BYD has a lithium iron phosphate battery factory in Lancaster (Lancaster), Pennsylvania, to provide batteries for BYD electric buses sold in the United States. Although the plant has a capacity of only about 1GWH, it is only about 500miles from the Tesla Fremont plant, and it can meet Tesla's early demand for lithium iron phosphate batteries through the upgrading of the production line.

"the information I got is that BYD has won an order from Tesla 10GWh." The above-mentioned people in the industry close to BYD revealed.

However, this information has not been confirmed by both parties. Based on the calculation of the 60-kilowatt-hour charge of Tesla's standard continued version of Model 3 / Y, this order can meet the loading needs of about 160000 standard continued version of Model 3 / Y. "it was a wise move for Tesla to switch to lithium iron phosphate battery." Sam Abu Samid (Sam Abuelsamid), chief analyst at market research firm Guidehouse Insights, said Tesla will not lower the price of the new version of the electric car, so the profit margin of the product will naturally increase.