Tesla (TSLA) reportedly using BYD batteries to build Model Y at Giga Berlin

According to a report by Teslamag.de, citing reliable sources, electric vehicle giant Tesla (NASDAQ: TSLA) has begun building a Model Y variant in Germany using batteries made by the Chinese company, BYD. With these purchases, BYD becomes the fourth battery supplier for Tesla, alongside Panasonic, LG Energy Solutions and CATL.

A Model Y without an additional designation has been in the Tesla configurator for Europe since last August. The new Model Y, like the Giga Texas Model Y All-Wheel-Drive, uses both front and rear casting, however, the Giga Berlin Model Y comes with some important differences. The biggest difference from that of the Giga Texas Model Y is that the new Model Y, according to information shared with German regulators last year, will be using batteries supplied by Tesla’s Chinese competitor BYD.

The new BYD battery Rear-Wheel-Drive Model Y has a smaller size pack and shorter range than both the Giga Texas AWD Model Y and the Giga Shanghai Rear-Wheel-Drive Model Y. The exact battery pack size of the new Giga Berlin Model Y is not yet known however, it’s estimated to be around 56-58KWh LFP battery pack.

It has been reported in the past that BYD has a less rigorous battery safety system and that the company’s vehicles are prone to vehicle fires. In the past few weeks, there have been several reports of BYD EV fires. Members of the Tesla community have pointed to BYD fires as the reason Tesla is still a better EV manufacturer.

However, short of any comprehensive study looking at BYD EV fires, it is difficult to conclude from the reports that the company’s EVs have a higher likelihood to catch fire. There are a lot of different reasons that may lead to a vehicle fire besides a battery cell. Also, Tesla is only purchasing the cells from BYD. The EV giant will be using its 15-year expertise to ensure the new Model Y is safe.

Currently, Tesla is just starting production of the Rear-wheel-Drive Model Y at Giga Berlin, and initial deliveries are expected in May-June.

Shares of TSLA are up 0.60% near end of day trading on Thursday.

By Michael Elkins | [email protected]

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