Tesla Motors CEO Elon Musk has recently taken to Twitter to respond to recently published reports stating that Samsung SDI shall be supplying the batteries for the upcoming sedan of the American electric carmaker, the Tesla Model 3.
In his tweet on June 8, Musk said that he would like to clarify that Tesla Motors is working exclusively with Panasonic for the Model 3 cells and that the news articles claiming otherwise are incorrect, reports The Verge.
The Tesla Model S and the upcoming Tesla Model X are using Panasonic cells so there is no reason why the company would use Samsung batteries on the Model 3.
A Tesla spokesperson also said that the company works with all the leading battery suppliers around the world. But Panasonic has been its battery suppliers for the Model S and the Model X.
The company representative also disclosed that Tesla is working very closely with Panasonic to ramp up battery cell production at the Gigafactory in Nevada for the Model 3.
Supplying cells for energy storage products
Last week, Reuters reported that Samsung SDI and Tesla Motors is close to forging a deal to help cover the unexpected demand for the Tesla Model 3 sedan which would be launched late next year.
However, the same report also hinted that the two companies may actually be in discussions to supply the cells for Tesla Motors’ energy storage products such as its Powerwall.
Musk did not deny that part of the Reuters report in his tweet which means that it is possible that Tesla will offload battery production for Tesla Energy products to another company while it focuses on increasing its production for the Tesla Model 3 cells over at its Gigafactory.
Market analysts believe that the tweet of Elon Musk is valued at either $580 million or $800 million depending on which side of the business spectrum one is coming from.
The post on Twitter actually cost Samsung some $580 million in market capitalization while Panasonic gained $800 million in value on the same day, reports BGR.
Musk also confirmed that the Tesla Roadster has LG Chem batteries and that Samsung batteries are going to go to the Tesla Energy division.
Tesla-related news normally has a major impact on its suppliers. Companies including Hankook Tire and LG Chem experienced similar effects in the past when word broke out that they would be making components for Tesla cars, and both of their stocks soared subsequently.
It was the opposite in the case of Hota Industrial Manufacturing of Taiwan. After reports came out in 2013 that it would be supplying gearboxes for Tesla cars, its stock has risen almost 10 times its value. However, when reports came out that Tesla is looking a second supplier of gearboxes, Hota’s stock started dropping.
An impressive range on a single charge
Tesla Motors has launched in March its Tesla Model 3 sedan, which at $35,000 is certainly far less expensive than its Model S hatchback and its upcoming Model X SUV.
As usual, the biggest lure to buyers when selling electric cars is how much range do the vehicles have before they re-charge. For its competitive price, the Tesla Model 3 can actually a distance of over 215 miles on a single charge.
The impressive range of the electric sedan was confirmed no less by Tesla Motors CEO Elon Musk. However, the Tesla CEO did not confirm the energy capacity of the battery pack that the Model 3 will be using.
Critics believe that it would really be impressive if Tesla can achieve a range of over 215 miles for the Model 3 on a less than 60 kWh pack.
Tesla does not like to talk about its battery cost because it complicates an already complex supply chain with several suppliers, including long-time partner Panasonic, and new ones like LG and Samsung.
However, the American electric carmaker needed to say its piece of mind when Jon Bereisa, CEO of Auto Lectrification and former chief engineer of the Chevy Volt program, said that the Model 3 estimate cost breakdown adds up to the vehicle being unprofitable for Tesla.
“The Tesla Model 3 will be officially released to the dealers late next year…” Not quite. Tesla does not sell through dealers.