Tesla and CATL maintain a complex and interdependent relationship. CATL supplies batteries for Tesla's vehicles produced in China, including models sold in North America. The Chinese company specializes in lithium iron phosphate (LFP) batteries, which, while generally offering less range than cylindrical cell units, provide advantages in cost and safety.

The disagreement between these two major players in the EV industry underscores the ongoing debate about the future of battery technology. While Tesla continues to heavily invest in its proprietary 4680 cells, CATL and other manufacturers are exploring alternative approaches, such as advancements in LFP batteries and the development of solid-state batteries.