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Audi hopes to beat Tesla in Chinese electric car market

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Tesla China

Audi is planning a major push into the Chinese electric car market in an effort to gain an advantage over Tesla. The German luxury automobile maker has announced its plans to produce five new electric vehicles for the Chinese market over the next five years, starting with the A6L e-tron sedan.

The L denotes a long wheelbase version of a car. Rear seat roominess is highly prized by Chinese customers, so manufacturers offer stretched variants of their regular models to lure Chinese customers. It will be manufactured in China in cooperation with local partner FAW automotive group.

The Q7 e-tron SUV is expected to go on sale in China next year and will be imported rather than manufactured in country. Audi says it will bring another electric car with more than 300 miles of range to the Chinese market in the near future. The Audi Quattro e-tron is scheduled to be released in Germany later this year.

More than 300,000 electric cars were sold in China last year, making it the largest market for electric vehicles in the world. EV sales are helped in large part by generous subsidies from the government, which can amount to as much as $16,000 per car. While those subsidies are set to scale back over the next few years, they still are larger than what other countries offer.

Selling electric cars in volume in China helps to spread research and development costs across more vehicles, lowering per unit costs. The same dynamic also helps lower battery manufacturing costs.

At present, Chinese law requires foreign car companies to share a significant amount of their technology with local manufacturing partners. But a new law is expected to be announced in the next few weeks that will significantly reduce that requirement. Companies will still be required to work with local partners but won’t need to share quite as much of their proprietary technology with them as before.

The change will make China an even more attractive market for Tesla, which makes some of the most technologically advanced cars in the world. Tesla plans to be a major force in the Chinese electric car market and is considering where and when to build its own factory in China. Audi and other manufacturers will need to move quickly if they want to keep Tesla from gaining an insurmountable lead in EV sales in China.

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Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025

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Tesla Megapacks chosen for 548 MWh energy storage project in Japan

Tesla plans to supply over 100 Megapack units to support a large stationary storage project in Japan, making it one of the country’s largest energy storage facilities.

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Tesla’s Megapack grid-scale batteries have been selected to back an energy storage project in Japan, coming as the latest of the company’s continued deployment of the hardware.

As detailed in a report from Nikkei this week, Tesla plans to supply 142 Megapack units to support a 548 MWh storage project in Japan, set to become one of the country’s largest energy storage facilities. The project is being overseen by financial firm Orix, and it will be located at a facility Maibara in central Japan’s Shiga prefecture, and it aims to come online in early 2027.

The deal is just the latest of several Megapack deployments over the past few years, as the company continues to ramp production of the units. Tesla currently produces the Megapack at a facility in Lathrop, California, though the company also recently completed construction on its second so-called “Megafactory” in Shanghai China and is expected to begin production in the coming weeks.

READ MORE ON TESLA MEGAPACKS: Tesla Megapacks help power battery supplier Panasonic’s Kyoto test site

Tesla’s production of the Megapack has been ramping up at the Lathrop facility since initially opening in 2022, and both this site and the Shanghai Megafactory are aiming to eventually reach a volume production of 10,000 Megapack units per year. The company surpassed its 10,000th Megapack unit produced at Lathrop in November.

During Tesla’s Q4 earnings call last week, CEO Elon Musk also said that the company is looking to construct a third Megafactory, though he did not disclose where.

Last year, Tesla Energy also had record deployments of its Megapack and Powerwall home batteries with a total of 31.4 GWh of energy products deployed for a 114-percent increase from 2023.

Other recently deployed or announced Megapack projects include a massive 600 MW/1,600 MWh facility in Melbourne, a 75 MW/300 MWh energy storage site in Belgium, and a 228 MW/912 MWh storage project in Chile, along with many others still.

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Tesla highlights the Megapack site replacing Hawaii’s last coal plant

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Elon Musk responds to Ontario canceling $100M Starlink deal amid tariff drama

Ontario Premier Doug Ford said, opens new tab on February 3 that he was “ripping up” his province’s CA$100 million agreement with Starlink in response to the U.S. imposing tariffs on Canadian goods.

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NORAD and USNORTHCOM Public Affairs, Public domain, via Wikimedia Commons

Elon Musk company SpaceX is set to lose a $100 million deal with the Canadian province of Ontario following a response to the Trump administration’s decision to apply 25 percent tariffs to the country.

Starlink, a satellite-based internet service launched by the Musk entity SpaceX, will lose a $100 million deal it had with Ontario, Premier Doug Ford announced today.

Ford said on X today that Ontario is banning American companies from provincial contracts:

“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.”

It is a blow to the citizens of the province more than anything, as the Starlink internet constellation has provided people in rural areas across the globe stable and reliable access for several years.

Musk responded in simple terms, stating, “Oh well.”

It seems Musk is less than enthused about the fact that Starlink is being eliminated from the province, but it does not seem like all that big of a blow either.

As previously mentioned, this impacts citizens more than Starlink itself, which has established itself as a main player in reliable internet access. Starlink has signed several contracts with various airlines and maritime companies.

It is also expanding to new territories across the globe on an almost daily basis.

With Mexico already working to avoid the tariff situation with the United States, it will be interesting to see if Canada does the same.

The two have shared a pleasant relationship, but President Trump is putting his foot down in terms of what comes across the border, which could impact Americans in the short term.

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