Actually Tesla does not
Actually Tesla does not produce any LFP batteries. But in the same way that Tesla teamed together with Panasonic to produce 18650 and 2170 batteries, they have partnered with CATL and others to produce LFP batteries for their entry model 3 and Y in China, and the base Model 3 in the U.S. LFP batteries do offer some advantages over NCA/NMC batteries. The biggest one being cost. But also they don't use cobalt or nickel. And they can be charged from 0-100% without significant degradation or chance of fire. But LFP batteries have lower energy density. Which means less power for a given weight or size. Or bigger, heavier battery packs for the same power provided. And LFP batteries have worse cold weather performance. China has had exclusive patents for LFP batteries for years now, but many of those patents are expiring this year. Tesla's 4680 battery development was created for vertical integration. But specifically it was designed a built so that Tesla would not be subject to future price and supply controls issued by Asian battery manufacturers, who control the market today. The shortfalls in chip and material supplies that have crippled the auto industry show how vulnerable they are to outside suppliers and vendors. It will be a year or two until the big Tesla 4680 battery factories in Texas and Germany ramp up production to match Tesla's EV production needs. The 4680 batteries will be cheaper, easier, and cleaner for Tesla to build, and will provide higher energy density than their current 2170 batteries. Plus the Tesla 4680 batteries should have a longer lifespan that LFP batteries do today. I believe that Tesla's partners will soon start to build LFP batteries in 4680 size/format, which will facilitate Tesla having one structural battery case for all battery chemistries, simplifying EV production, and lowering cost.