After rumors about sourcing other car battery cell suppliers emerged online, Tesla Motors Chairman and CEO Elon Musk turned to Twitter to clarify the reports.
In his Twitter post, the billionaire inventor said that the electric car manufacturer will exclusively get their battery cells for the upcoming Model 3 automobiles from Japanese electronics corporation Panasonic. This is contrary to reports that they will also use battery cells made by Samsung.
Would like to clarify that Tesla is working exclusively with Panasonic for Model 3 cells. News articles claiming otherwise are incorrect.
— Elon Musk (@elonmusk) June 8, 2016 " data-caption="null" data-credit="null">Speculations about sourcing battery cells from Samsung came out when Reuters cited an unnamed source claiming that Samsung Electronics' Samsung SDI was tapped to supply batteries for several Tesla products such as the Model 3. This could reportedly push through if the company's battery plant will fail to meet the demand.
Musk also revealed that Panasonic also supplies all the batteries for other Tesla automobile products, including the Model X and the upcoming Models S. However, other reports claim that the company will still get batteries from Samsung for its Energy division that sells batteries for businesses called the Powerpack and home batteries called Powerwall.
The Los Angeles Times revealed that the exclusive deal with Tesla will greatly benefit Panasonic. According to director Darrell West of the Center for Technology Innovation of the Brookings Institution in Washington, Panasonic is a "respected brand and they have invested a lot in battery technology." He added that the deal will be "crucial for the future of this particular vehicle. It's really all about the battery."
Tesla Motors' upcoming Model 3 automobile was unveiled on March 31, but the units are expected to come out on the market by the end of 2017 in countries such as the U.S., Brazil, India, South Africa, New Zealand, South Korea, Ireland, and Singapore. It was also speculated to have a starting price of $35,000, making it one of the most affordable electric cars in the market upon release.
