Categories Consumer, Markets, Retail, Technology

Tesla might use battery from Chinese firm Lishen, indicates new report

With the trade-standoff between China and the United States of America tightening over time, a recent report by Reuters cites sources that say that Elon Musk’s electric car giant Tesla Inc (TSLA) received quotes from Tianjin Lishen for the supply of batteries to its new Shanghai factory. However, reports suggest that no deal has been inked between Tesla and the Chinese battery company.

Both companies have not gotten back on the specifics of the deal, the volume of batteries required, or the technical specifications of the materials involved.

Meanwhile, according to the news agency’s sources, Lishen had confirmed that it did not sign any agreement with Tesla regarding the supply batteries to the factory.

Tesla fast-tracks China program with plans to start delivery in March

It was only last week, on Friday in premarket trading, that Tesla saw its shares fall about 8% after it announced its decision to lay off 7% of its workforce to cut costs.

With a workforce of over 45,000 employees, Tesla reduction would affect over 3,000 employees. This was the electric car company’s second workforce reduction in the last year. Last June, Tesla cut its workforce by 9%.

Despite these possible setbacks, Elon Musk has the Chinese car market in the crosshairs. Tesla’s ambitious China initiative might have hit a roadblock as sales numbers for the fourth quarter fell short of expectations, they clearly show that the company is giving tough competition to the other carmakers in the Asian country.

Earlier in January, Tesla also confirmed that it was on track to begin the delivery of Model 3 sedan to buyers in China by March, in line with CEO Elon Musk’s earlier announcement. The Model 3 is expected to be priced at $72,000 initially in the country, despite headwinds from the US-China trade war.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top