(TSLA) BYD's Battery Delight Is Tesla's Battery Blight

Summary

• LFP offers a cheaper, safer, alternative to the high-density cathodes currently preferred by many western EVs.
• Due to its lower cost, LFP is growing in popularity globally and BYD, the leading manufacturer of LFP batteries, stands to benefit tremendously.
• Tesla has started to embrace LFP batteries for its most popular vehicles, a decision made to improve margins and keep costs down.
• Without any R&D put into LFP, Tesla is getting the same LFP cells as every other EV manufacturer, effectively homologating its powertrain to rivals.
• Tesla and BYD are both priced for extreme growth, but only BYD has the momentum, and market fundamentals, to support it.