Tesla Giga Berlin starting production of Model Y with BYD batteries, claims report

Tesla does not have a large lineup of vehicles, but the company appears to be diversifying its lineup of battery suppliers. If recent reports are accurate, then perhaps Giga Berlin has started building Model Y units with the much-rumored batteries from BYD.

Tesla Germany currently offers three variants of the Model Y crossover. The entry-level variant, which features an RWD setup, has so far been imported from Gigafactory Shanghai. This suggested that the Model Y RWD from Germany has been equipped with lithium iron phosphate (LFP) batteries from CATL.

Citing industry sources, German publication Teslamag.de recently noted that Gigafactory Berlin has also started the production of Model Y units that are equipped with batteries from BYD. If accurate, this would mean that Gigafactory Shanghai would have some breathing room for its exports, as Model Y RWD units that were previously sent to Germany could now be sent to other countries.

Interestingly enough, the German publication’s sources also suggested that the new Model Y variant being produced at Giga Berlin is equipped with a structural battery pack. Such a setup would be quite interesting as Tesla’s other Model Y variants with structural batteries are equipped with the company’s 4680 battery cells.

While Tesla has never really confirmed if BYD was a battery supplier, previous filings from the electric vehicle maker have indicated that some plans between the two companies are likely in the works. In August last year, for example, China-based publications noted that BYD batteries had started deliveries to Giga Berlin. Documents leaked in Germany also hinted that the Netherlands Vehicle Authority (RDW) had granted approval for a new type of Model Y with BYD batteries.

What is quite interesting about the recent reports from Germany is the idea that Tesla and BYD are working together to possibly bring the Model Y’s most affordable variant to Europe. Media reports typically frame Tesla and BYD as bitter rivals due to the companies’ competition in China’s EV market, but as per Tesla CEO Elon Musk in a previous comment, “relations between Tesla and BYD are positive.”

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