What Happened: Tao said that Tesla had tried the battery swap approach in 2013, and while it was good for certain applications like cabs or buses, charging is the better way to replenish energy, according to CnEVpost.

“We've always believed that the charging model is the best way to replenish energy for large-scale use of civil electric vehicles."

The Tesla executive also drew an analogy with other electronic devices such as cell phones, which now come with integrated batteries but a decade ago came with removable ones. 

See also: How to Invest in Tesla Stock

Why It Matters: Tao emphasized the superior nature of the recharging model by saying that Tesla’s latest V3 supercharging technology can replenish 250 km of range in 15 minutes, which is akin to a week’s worth of power for an in-town commute.

Tesla denied rumors surrounding battery swapping earlier last week after Tesla China’s business registration recently added “sales of battery swap facilities for new energy vehicles.”

Last year, Nio unveiled a battery-as-a-service or subscription model, under which customers can purchase an EV separately and then subscribe to use a battery pack.

Price Action: Tesla shares closed nearly 3.8% lower at $597.95 at press time on Friday and fell 0.28% in the after-hours trading. 

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