Why Fitch Sees Tesla As A Major Competitor To Its Own Battery Supplier CATL

Ratings agency Fitch said on Monday $Tesla(TSLA.US)$expansion of its supercharging network could imply stiff competition for its battery supplier CATL, which has been betting on its battery-swapping service.

What Happened: Elon Musk-led Tesla, $XPeng(XPEV.US)$and $VOLKSWAGEN A G(VWAGY.US)$ are among automakers that could offer CATL’s battery-swapping services near-term resistance as they ramp up their supercharging networks, as per Fitch.

CATL, the world’s largest battery maker, recently launched EVOGO — a fast battery-swapping service. It also supplies batteries to Tesla and U.S.-listed Chinese electric vehicle maker $NIO Inc(NIO.US)$

“The success of CATL’s strategy depends on automakers’ willingness to switch to battery swapping. Many are instead investing in high-voltage fast-charging technology,” the analysts at Fitch said.