Tesla’s battery suppliers were surprised by Musk’s cost cutting efforts

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Tesla’s Elon mask has cast a shadow on the prospects of its Asian suppliers after announcing a move to reduce the cost of electric vehicles’ batteries and suggesting it would eventually start producing its own batteries.
LG chemicals fell 5.5 percent in Seoul, Ningde era down 4.7 percent in Shenzhen, and Panasonic fell 4.3 percent in Tokyo. According to Bloomberg’s supply chain analysis, three major electric vehicle battery manufacturers around the world supply Tesla.
Tesla still needs to buy batteries from the three companies, but if it doesn’t start producing its own batteries, there will still be a “serious shortage” by 2022, said mask, the chief executive of models s, X and 3 vehicles.
At a battery day event at Tesla’s Fremont factory in California, mask said the company plans to produce $25000 worth of electric vehicles in about three years. The difference from the company’s current cheapest model ($37990) can be achieved by halving the cost of the battery, the most expensive component of an electric vehicle.