Sunwoda Joins Tesla's Supply Chain, Providing Batteries for European Models at Shanghai Gigafactory

Sunwoda has entered Tesla's supply chain and has begun small-scale deliveries of lithium iron phosphate (LFP) battery cells for European-model vehicles produced at Tesla’s Shanghai Gigafactory. Tesla selected Sunwoda primarily for cost-control reasons. Facing pressure from projected revenue decline and a significant drop in net profit in 2025, Tesla urgently needs to reduce manufacturing costs. As a second-tier battery manufacturer, Sunwoda offered a lower quote and agreed to a special collaboration model with Tesla: supplying only basic battery cells, while Tesla handles subsequent processes such as battery management systems, thermal management, and module packaging in-house. Although Sunwoda previously faced quality-related complaints from Geely, its successful qualification through Tesla’s stringent standards demonstrates that its products now meet Tesla’s requirements for EV batteries. Following the announcement of this partnership, Sunwoda’s share price rose.