On Sunday, a report from the Korean Economic Daily suggested that Tesla China would not be continuing its battery supply deal with BYD. The report, which cited industry sources, claimed that this was due to safety concerns about BYD’s lithium iron phosphate (LFP) batteries.
Both Tesla CEO Elon Musk and BYD itself have now issued statements denying the report. In a post on Twitter, Elon Musk noted that the report was false, and that Tesla and BYD still have a strong relationship.
“That media report is false. Relations between Tesla and BYD are positive,” Musk wrote.
BYD also issued a statement about the report. The Chinese automaker, whose automotive division is also one of Tesla’s strongest competitors in China, denied the report. As per a report from Reuters, BYD stated that the report was “not in line with the actual situation.”
While Tesla and BYD’s reported battery supply relationships have not been publicly disclosed, executives from the automaker have noted previously that a supply deal with the American electric vehicle maker was coming. In an interview with Chinese state-owned broadcaster CGTN last June, BYD Executive Vice President Lian Yubo stated that BYD would supply batteries to Tesla “very soon.”
In April 2022, the European Union approved the Model Y with BYD batteries. The Model Y with BYD batteries was listed with a 55kWh battery pack. It had a range of 440 kilometers.