Tesla is open to supply batteries to other automobile manufacturers.

Tesla Popular Electric Car Manufacturer.

Elon Musk, the chief executive officer of Tesla Inc, said on Tuesday that the company is supplying powertrains and batteries and is open to software licensing. Tesla has previously supplied the batteries to Mercedes and Toyota Motor under separate partnership deals. Analysts and industry officials say battery manufacturing is a field in which the US electric car manufacturer is competing with other older automakers.

Musk said in a Twitter message that "Tesla is open to software licenses and is supplying power trains and batteries. We are trying to increase Sustainable Energy here and not eliminate the competitor."

It is not yet clear what kind of batteries they are supplying. Tesla currently runs a joint venture with Panasonic Corp and also manufactures batteries from China's Contemporary Amperex Technology (CATL) and LG Chem of South Korea. Tesla plans to build its own battery manufacturing facility at its Fremont plant in California as part of its "Roadrunner" project. Batteries are the most expensive and important component in electric vehicles (EV).

South Korean battery expert and Seojeong University professor Park Chul-wan said that "this supply can reduce entry barriers for EV startup makers." This poses a potential threat to older automakers who have their own platforms. "He said that" if this strategy succeeds it will increase the EV market's dependence on Tesla. "Musk recently announced the Earnings Conference stated that the real growth for Tesla is battery cell production at an affordable price, and said that the company will expand its business with Panasonic, CATL and LG Chem. In 2014 Musk also said that Tesla will provide others with electric car by all manufacturers. In the hope of accelerating the use of its patents.

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