Tesla Inc TSLA CEO Elon Musk has reacted to the information that rival Volkswagen AG VWAGY is constructing its personal electrical automobile batteries.
What Occurred: Musk tweeted “Nice!” in response to a Slashdot article that mentioned Tesla’s German rival was saying a $20 billion effort to construct its personal EV batteries.
— Elon Musk (@elonmusk) July 8, 2022
Volkswagen will create a brand new firm referred to as Energy Co to construct batteries because it vies to safe sufficient capability, in accordance with Slashdot.
Why It Issues: It was just lately reported that Warren Buffett-backed BYD Co BYDDY will start supplying batteries to Tesla. The Musk-led firm additionally will get provides from China’s CATL, the world’s largest EV battery maker, additionally a provider to Volkswagen.
Musk just lately dismissed a forecast by Bloomberg Intelligence that Volkswagen may emerge because the prime electrical automobile maker by 2024.
Volkswagen expects half of its world gross sales to be EVs by 2030 and bought 8.6 million autos worldwide final 12 months, out of which 452,900 had been battery EVs. In distinction, Tesla bought virtually 1,000,000 EVs in 2021.
Worth Motion: On Thursday, Tesla shares closed 5.5% larger at $733.63 within the common session and fell 0.4% within the after-hours buying and selling. On the identical day, Volkswagen OTC shares jumped 5.5% to $18.24 in common hours, in accordance with Benzinga Professional knowledge.
Benzinga’s Take: Whereas Volkswagen has emerged as a potent rival to Tesla, significantly in Europe, it could discover battery making to be a difficult proposition. Just lately, Rivian Automotive Inc RIVN CEO R.J. Scaringe touched upon the shortages in uncooked supplies wanted for battery making. These shortages prolong to cobalt, lithium and nickel. Based on Scaringe, 90% to 95% of the provision chain merely doesn’t exist.
Learn Subsequent: Volkswagen Says US May Face Many Challenges To Ramp Up EV Battery Output
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