​Tesla's Elon Musk denies new battery deal for Model 3

Tesla CEO Elon Musk has denied via Twitter that the company was getting batteries from Samsung for the upcoming Model 3 sedan.
Written by Cho Mu-Hyun, Contributing Writer

Tesla CEO Elon Musk rebutted earlier reports that claimed the company was in talks with Samsung for a battery supply deal for the upcoming Model 3.

In his twitter on Wednesday, Musk wrote that he would like to "clarify that Tesla is working exclusively with Panasonic for Model 3 cells. News articles claiming otherwise are incorrect."

Earlier, media reports from South Korea claimed that Samsung SDI's battery cells shipping to an Oakland port was destined for Tesla's development facility.

Japan's old battery powerhouse Panasonic has been the exclusive supplier of batteries for Tesla up to October of last year, when it was announced that South Korea's LG Chem will supply small volumes as well.

Both Samsung and LG have designated car batteries as next growth engines and are pitching them to automakers. Samsung have close ties with BMW, as does LG with GM.

A large volume deal to Tesla will increase their credentials and allow them to increase client lists, as well as reap huge rewards if the company grows to be as big as outlooks suggest. But it will need more suppliers if volume increases going forward.

Tesla is also the only car vendor to be fully committed to electric cars, unlike other old giants who mainly promote hybrids.

Model 3, the moderately priced $40,000 sedan, is expected to launch next year and Musk has hinted that it may be fully autonomous.

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