On June 5, it was reported that BYD's subsidiary Fodi Battery had reached a supply agreement with Tesla for the Shanghai energy storage plant in March this year, and would supply energy storage cells to Tesla in the first quarter of next year.

Tesla's Shanghai energy storage factory is currently only planning the Megapack product line. It is understood that the first supply of battery cells in the factory has been determined to be CATL, and the second supply is Fodi. Fodi's share of supply is more than 20 percent, according to a person familiar with the matter. With a designed annual production capacity of 40 GWh of Tesla's energy storage plant in Shanghai, Fodi's order corresponds to a supply of more than 8 GWh at full capacity, with an annual order value of about 3.5 billion yuan, according to industry prices.

Under the rapid growth of sales, the current challenge of the energy storage cell industry is the price war. The average price of energy storage cells fell by more than 35% last year, and as far as we know, the current industry quotation has reached a record low of 0.33 yuan/Wh.

A person close to BYD said, "BYD has given Tesla the best price, which is close to the cost line." Tesla, as a manufacturer of energy storage systems that purchases battery cells, is still enjoying high gross margins. According to the financial report for the first quarter of this year, the gross profit margin of Tesla's energy storage system reached 25%, 9.5 percentage points higher than that of the automobile business, and the gross profit margin was the first among all Tesla's businesses.