Panasonic To Invest “Tens of Billions Of Yen” As First Installment Into Tesla Gigafactory
Panasonic Corp. established a new company Panasonic Energy Corporation in the U.S. to produce batteries for Tesla in the Gigafactory complex.
Panasonic Chief Executive Kazuhiro Tsuga recently stated that:
“Our initial investment amount in the factory will be tens of billions of yen. We will expand the size as we go by pouring in further installments of similar amounts.”
10 billion of yen is roughly equal to $92 million, so tens of billions of yen must be hundreds of millions of dollars and this is just the initial installment.
It’s expected that Panasonic will contribute 30-40% of the total Gigafactory cost of $5 billion, which is $1.5-$2 billion, while Tesla will cover half $2.5 billion.
Panasonic would like to be ready with production capacity on time to not delay the Tesla Model 3:
“Our policy is to avoid a situation where Tesla wants to make more cars but doesn’t have enough batteries.”
Source: The Wall Street Journal