Tesla's energy storage division has been on a meteoric rise. Sales have surged over the past 12 months, making this sector a hugely profitable arm of Tesla's sprawling empire. Meanwhile, Tesla's electric vehicle growth has hit a plateau, but the energy side? It's ablaze with potential. However, this story has a wrinkle—a challenge that Tesla has expertly navigated.
Let’s cut to the chase: there's a **25% tariff on Chinese batteries**. This tariff has been a thorn in Tesla's side because, while they can find cheaper batteries from China, that 25% tax is a deal-breaker. But here’s the twist—Tesla has devised a strategy to get around this problem and leverage its position in a ground-breaking way. They’ve partnered with **EVE Energy**, a China-based battery manufacturer, to produce lithium iron phosphate batteries in **Malaysia**. This is not just a clever workaround; it’s a game changer.