Tesla Motors Inc (TSLA) Musk Denies Claims About Samsung Supplying Batteries For Model 3

Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk has revealed that his firm is not holding negotiations with Samsung SDI for the supply of batteries for Tesla vehicles.

Musk was responding to earlier claims and publications suggesting that Samsung SDI and Tesla are negotiating a deal where Samsung will supply the electric automobile maker with batteries for the Tesla Model 3. The CEO denied the claims through a post on Twitter where he stated that the battery cells for the Tesla Model 3 will be provided exclusively by Panasonic.

One of Tesla Motors Inc (NASDAQ:TSLA)’s spokespersons stated that the company teams up with the top ranked battery suppliers in the world though no details regarding the suppliers were received. Panasonic has been supplying batteries for the Model X and it is already in joint efforts with Tesla to boost battery production for the Model 3 at the Tesla Gigafactory.

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Reuters had wrongly posted about Samsung SDI’s involvement suggesting that the deal had the potential to boost the firm’s ability to handle rising demand for the Model 3. Earlier reports had stated that Tesla’s development facility in California had received a 120 ton shipment of Samsung SDI batteries. The shipment led to speculation that Samsung could become a battery supplier for the Model 3 in the future.

The batteries supplied by Samsung measure 65mm in height and 18mm in diameter and can be compiled to generate enough power plant for a vehicle. One of the spokespersons from Samsung was approached on the matter but declined to comment.

Panasonic is also helping Tesla Motors Inc (NASDAQ:TSLA) to develop the $5 billion gigafactory in Nevada. Tesla is thought to be seeking more battery suppliers because it requires roughly 250 million battery cells to cater to the demand for the Model 3.

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Note: This article is written by Andy Parker and originally published at Market Exclusive.