Part 8/10:
While there is reported excess supply in the lithium battery market, especially concerning LFP (Lithium Iron Phosphate) cells, concerns remain about Tesla's perceived supply limitations. Three possible explanations could account for this discrepancy:
Market Segmentation: The surplus may be primarily in lower-tier products, while higher-quality supplies remain constrained.
Emerging Demand Dynamics: With Tesla's production scale-up looming, existing supply chains may not seamlessly accommodate sudden increases in production.
Strategic Planning: Tesla’s ramping up of both vehicle production and stationary storage solutions might necessitate more significant battery cell supply—forecasting a near-term supply crunch.