COVID-19 brought to the fore the problems electric vehicle makers face when the supply chain is challenged. $Tesla (TSLA.US)$seemed to have removed the risk out of the equation as far as its battery supply is concerned.
Tesla for the first time has access to all the battery cells it requires, Martin Viecha, vice president of investor relations at Tesla said, according to Business Insider. He made the comments at an invite-only Goldman Sachs Tech Conference.
About 90% of the battery cell is used for Tesla EVs and the remaining go into its energy storage products, the report said, citing the executive.
"For the first time I can remember, we can access all the supply we need for both businesses," he reportedly said.
See also: Tesla Battery Supplier CATL Said To Actively Explore Sites For US Manufacturing Plants
Viecha attributed Tesla's improved access to supply to the expansion of its supplier base in recent years. From Panasonic Holdings Corp (OTC: PCRFY), the company has expanded its battery suppliers to include China's CATL and South Korea's LG Chem, he added. The executive also mentioned the possibility of adding more suppliers.
The EV industry can grow only as fast as the battery supplies are improving, he reportedly said. The supply chain included not only manufacturing cells and battery packs, but also designing batteries, and mining and refining lithium, nickel, and other raw materials, he added.
Price Action: Tesla closed Monday's session 1.58% higher at $304.42, according to Benzinga Pro data.