Tesla Announces Partnership with CATL Amid Lowered Forecasts for First-Quarter Deliveries
Tesla has officially entered into a partnership with Chinese electric vehicle battery manufacturer Contemporary Amperex Technology Co., Ltd. (CATL), in a move that industry experts are calling a “game changer” for the American electric vehicle company. This announcement comes at a time when Tesla is facing challenges in meeting its first-quarter delivery targets.
According to Adam Jonas of Morgan Stanley, the partnership with CATL is crucial for Tesla’s success in the electric vehicle market. He emphasized the need for high-quality and affordable battery technology in the United States, while pointing out the oversupply of batteries in China.
CATL’s chairman, Robin Zeng, confirmed the partnership in an interview with Bloomberg, revealing that the battery maker is working on developing faster-charging batteries for Tesla and providing machinery to Tesla’s factory in Nevada. Jonas noted that Tesla recognizes the importance of cooperation with China for the mass adoption of electric vehicles in the US.
The news of the partnership with CATL comes as a growing number of analysts have lowered their forecasts for Tesla’s first-quarter deliveries. Analysts surveyed by FactSet expected Tesla to deliver 471,000 electric vehicles in the first quarter, compared to 423,000 in the same period last year.
Tesla typically reports its delivery numbers shortly after the end of the quarter, with the first-quarter data expected to be released in the coming days. The partnership with CATL is seen as a strategic move for Tesla as it navigates the challenges of the evolving electric vehicle market.
(This article is translated from MarketWatch, which is independent from Dow Jones Newswires and The Wall Street Journal, but operated by Dow Jones.)