U.S. vehicle that is electric Tesla Inc (O:TSLA) is poised to start selling some Model 3 vehicles made in Asia equipped with cobalt-free lithium iron phosphate (LFP) batteries, two people familiar with the situation said.
Currently the Model 3 sedans that are electric at the carmaker’s Chinese plant use nickel-manganese-cobalt (NMC) batteries. The price that is starting the cars is currently 271,550 yuan ($39,900) after factoring in government subsidies.
Tesla will announce the product change as early as, the two sources said Thursday. They declined to be named as the matter is confidential.
Tesla was not immediately available for remark.
LFP batteries are cheaper to make and contain no cobalt, one of the more metals being expensive in electric vehicle batteries. Tesla will use LFP batteries in all Model 3 vehicles made in China with standard ranges that are driving in line with the sources.
In China, the world’s automobile market that is biggest, Tesla sold over 11,000 vehicles, mostly Model 3s, in August. It is also creating a car that is new ability for Model Y sport-utility cars in Shanghai and expects to start out delivery of them from next year. U.S. vehicle that is electric Tesla Inc (O:TSLA) is poised to start selling.
Reuters has previously reported that Tesla would use LFP batteries made by China’s CATL (SZ:300750), which declined to comment at the time.
Tesla’s delivery that is third-quarter are due this week and the number will probably move the stock significantly.
The consensus delivery number has crept up recently, making it a little more difficult for the automobile that is electric to produce the all-important Wall Street “beat.” But betting against Tesla lately has become a concept. that is risky.