Elon Musk, CEO of the global electric vehicle manufacturer Tesla has opened doors for licensing software and supplying powertrains and batteries to other players in the automotive industry.
Tesla has previously under separate partnership deals, supplied Mercedes and Toyota Motor S Battery with batteries which is an area where many analysts and industry officials feel the electric car maker has a competitive edge compared with established automakers.
“Tesla is open to licensing software and supplying powertrains & batteries. We’re just trying to accelerate sustainable energy, not crush competitors!” Musk said in a message on Twitter.
It was unclear which types of batteries, which are the most expensive and important component of electric vehicles (EV) will be supplied by the automaker.
Tesla currently runs a battery joint venture with Panasonic Corp and also sources batteries from China’s Contemporary Amperex Technology (CATL) and South Korea’s LG Chem. The firm is also preparing to build its own battery manufacturing facility at its Fremont, California, plant under its “roadrunner” project.
“The supply could lower the entry barriers for startup EV makers, posing a potential threat to legacy automakers, which have their own platforms. The strategy, if successful, will increase the EV market’s dependence on Tesla” said Park Chul-wan, a South Korean battery expert and a professor at Seojeong University.
Tesla CEO said in a recent earnings conference call that the real hindrance to Tesla’s growth is battery cell production at an affordable price adding that the company would expand its business with Panasonic, CATL and LG Chem.
In 2014, Musk also said Tesla would allow others to use its patents in hopes of speeding up the development of electric cars by all manufacturers.
Thank you very much for choosing GCC Business News to be an important part of your professional life. You will receive a confirmation e-mail. Please check SPAM or UPDATES folder
