Tesla to release lower-priced versions of Model S car

South Korean battery-maker Samsung SDI’s shares rebounded Thursday after Tesla Motors chief executive Elon Musk said the Korean firm may supply batteries for its energy unit.

Samsung SDI is moving forward in talks with Tesla Motors to supply batteries for the USA automaker’s Model 3 electric vehicle in addition to its energy storage products, a source with direct knowledge of the matter revealed.

The visionary leader tweeted that Panasonic will remain the exclusive supplier for the Model S-3-X battery cells. In a statement sent to The Verge, a spokesperson of Tesla conveyed that the company is working with all the leading battery suppliers around the globe, but no further comments were passed regarding details of programs with those suppliers.

Tesla is responding to demand from customers who can’t afford the longer-range versions of the Model S, which start at $76,500. It will be spending as much as $1.6 billion into the $5 billion factory, which it will be responsible for manufacturing battery cells scheduled to take place later this year.

It was reported yesterday that Tesla could be inking an agreement with Samsung SDI to source batteries for the Model 3.

Panasonic is also a major investor in Tesla’s new Gigafactory facility in Nevada. Tesla’s visionary leader forecasts the company will increase its automotive delivery volume ten times by 2018, along with the rollout of hundreds of Model 3 vehicles by the second half of 2017. Panasonic’s new focus on making automotive components and other related parts will make it a pioneer in the booming EV segment, particularly if it associates with Tesla, which is constantly innovating the automotive space. That’s undoubtedly impressive, but because Tesla’s run on lithium-ion batteries, it’s only natural for some skeptics to raise concerns about battery degradation and how prolonged vehicle use over time can ultimately affect range and performance. However, suppliers have said that it is going to be a hard goal to achieve.