More trouble for Tesla as Panasonic freezes Gigafactory investments

More trouble for Tesla as Panasonic freezes Gigafactory investments

However, Tesla and Panasonic have now chose to freeze major investments in expanding the Gigafactory 1 capacity because EV sales have been below expectations, Nikkei reports.

The electric automaker, run by billionaire entrepreneur Elon Musk, made the comment in response to a report by Japanese news service Nikkei that said Tesla and Panasonic were pulling back on plans to increase the capacity of its plant, which supplies battery packs for the electric vehicles.

So far, Tesla and Panasonic have invested US$4.5 billion in Gigafactory 1.

On Thursday morning, Japan's Nikkei Asian Review reported that Panasonic has chose to stop its planned investments in Tesla's Gigafactories. The company will, however, provide technical support and a small number of batteries from the now operating Gigafactory.

"That said, we believe there is far more output to be gained from improving existing production equipment than was previously estimated". The two companies had planned on boosting production capacity at the US Gigafactory from 35GWh to 54GWh by 2020; that now seems unlikely.

Once the Nikkei report surfaced, shares of Tesla dropped almost three percent because of what the report implies: EV demand may not be growing as quickly as expected and in that case, costly upgrades to produce more batteries wouldn't be needed.

"Watching the demand situation, Panasonic will study additional investments over 35 GWh in collaboration with Tesla".

"Both Tesla and Panasonic continue to invest substantial funds into Gigafactory", a Tesla spokesperson told The Post in a statement, referring to electronics maker Panasonic, which is Tesla's battery cell supplier. At the same time, it has also decided with Tesla to freeze spending to expand Gigafactory 1, which has manufactured Model 3 batteries since 2017. Tesla shares have declined by 17 percent year to date.

The report about moderated expansion plans for Gigafactory 1 comes a week after Tesla reported lackluster vehicle deliveries numbers for the first quarter of 2019. Tesla has stated that 2019's goal is to produce 360,000 electric vehicles. Of course, we will have same-day coverage of Tesla's 1Q 2019 results right here!



Related Posts

Airbnb Backtracks on Its Decision to Delist Israeli Settlement West Bank Rentals
Israeli lawyers filed a class action suit, which is when a group of people with similar claims sues the defendant in one action. Airbnb has denied that its West Bank delisting plan targeted Israel in general.

Saudi Aramco bond sale to close Wednesday: minister
And later in the bond market itself, where the Saudi government successfully raised debt this year. Falih is also chairman of state-owned Aramco, the world's largest energy company.

Services set for Westfield Principal, 44, Who Died After Selfless Act
His sleep apnoea prevented doctors from using general anaesthesia, and they instead were to harvest stem cells intravenously. Nelson and the teen were connected through Be the Match , a worldwide bone marrow registry network.

First black hole picture released
That isn't a single instrument but rather a collection of seven radio telescopes from around the world. The one in our galaxy is closer but much smaller, so they both look the same size in the sky.

Fans arrive for rapper Nipsey Hussle's Los Angeles memorial
Hussle, whose real name was Ermias Asghedom, was Grammy-nominated earlier this year for his debut studio album " Victory Lap ". The man suspected of killing him, Eric Holder, has been charged with murder and two counts of attempted murder.

The Billy Donovan to UCLA rumors have officially come to an end
Cronin has been hired as UCLA's basketball coach, ending a months-long search to find a replacement for the fired Steve Alford . To be able to join such a world-class institution is truly a privilege, and I can't wait to get started in Westwood".

Michael Avenatti Faces Up To 333 Years In Prison After Indictment
Department of Justice and the IRS will reportedly plan to announce the "filing of a 36-count indictment". But Avenatti denied to the client that the total settlement had already been paid, the indictment reads.

Sacramento Kings fire head coach Dave Joerger after 3 seasons
The Kings lost to 136-131 to the Trail Blazers on Wednesday when Joerger made a decision to sit his starters in the second half. The trade was meant to help bolster Sacramento's chances of making the playoffs, but the Kings fell short.

Madonna to perform at Eurovision Song Contest in Israel
The cost of bringing the global superstar to Israel will be covered by Israeli-Canadian billionaire Sylvan Adams. However Eurovision organisers told the BBC : "No final decisions have been made, or agreements signed".

Herrera to join PSG despite late Manchester United contract offer
Manchester United are planning to bring in multiple faces to strengthen their squad and challenge for the Premier League title. He is quick, powerful, helps at the defensive end, he can go one-on-one, he provides assists and scores.

© 2015 ExpressNewsline. All Rights reserved.