Panasonic To Invest In Tesla Motors Giga Factory One Step At A Time

3 years ago by Eric Loveday 9

Two Gigafactory Sites Will Be Developed In Parallel To Avoid Unforeseen Delays

Two Gigafactory Sites Will Be Developed In Parallel To Avoid Unforeseen Delays

Panasonic 18650 High Capacity Lithium Batteries

Panasonic 18650 High Capacity Lithium Batteries

According to ValueWalk, Panasonic is committed to Tesla Motors, but Panasonic’s level of commitment depends solely on battery cell demand.

ValueWalk reported last week:

“Japanese giant Panasonic Corporation executives sought to ally investor concerns about the firm taking part in the electric vehicle maker’s $5 billion plant, clarifying that any investment decision will be made one step at a time, in line with market demand. In today’s investor relations event, analysts questioned how Panasonic will ensure a return on its investment and whether it has any backup plan if demand for Tesla cars doesn’t live to initial expectations.”

Panasonic’s Executive Officer Shinji Sakamoto went on record stating:

“We have no intention of taking on a big adventure all at once.”

Panasonic’s current agreement with Tesla Motors calls for 2 billion cells to be delivered to Tesla through the end of 2017.  Beyond that, there’s official on-the-record agreement for Panasonic to supply Tesla.  It’s widely believed that Panasonic will join forces with Tesla Motors on the battery giga factory, but Panasonic’s stance is that it will evaluate demand and invest only step by step in tune with dmeand.

Panasonic senior managing executive officer Yoshio Ito commented on the giga factory, saying that Panasonic will weigh “division of responsibilities and share of ownership in the factory” before making any official decision.

Panasonic Energy President Naoto Noguchi Gives Tesla CTO JB Straubel One Of The First 18650 Lithium-ion Cells At Panasonic's Suminoe Factory In April Of 2010

Panasonic Energy President Naoto Noguchi Gives Tesla CTO JB Straubel One Of The First 18650 Lithium-ion Cells At Panasonic’s Suminoe Factory In April Of 2010

Source: ValueWalk

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9 responses to "Panasonic To Invest In Tesla Motors Giga Factory One Step At A Time"

  1. Anthony says:

    One of the things mentioned previously by Musk is that the gigafactory should be looked at as an industrial park under one roof. So while Tesla spends the money to build out all the infrastructure necessary for the full GF, but Panasonic only needs to supply and install capital equipment to meet cell manufacturing demands. They don’t have to install 35GWh/yr capacity in 2017, they slowly ramp up manufacturing capacity as Tesla demonstrates they can sell their Gen 3 cars into the market, and that Solar City can successfully sell battery storage to customers. If Tesla ends up holding the bag for excess capacity at the GF thats fine, its their own fault and Panasonic isn’t worse off.

  2. Mart Shearer says:

    Growing business too rapidly is as deadly as not growing at all. Panasonic shows good sense not to risk the company on expanding so quickly that supply exceeds demand.

  3. GeorgeS says:

    The poker match continues.

    1. GeorgeS says:

      …not chess Mister Spock.

      poker

  4. ffbj says:

    It’s more like soccer, but with the players on one team. It’s not chess or poker since they are not adversaries. But the forwards pressing forward to score while the defense protects, they don’t take changes. Whether you are going with 5 forwards or 5 defenders.
    Not a great analogy.

  5. ffbj says:

    It’s more like soccer, but with the players on one team. It’s not chess or poker since they are not adversaries. But the forwards pressing forward to score while the defense protects, they don’t take chances. Whether you are going with 5 forwards or 5 defenders.
    Not a great analogy.

  6. Despite the conservative statements to allay investors’ concerns, Panasonic is not going to let this whale get away.

    The Model X will sell out the first years production before the first unit ships to a customer. It’s already halfway there.

    The Gen III will likely be the most successful new car introduction in history, also with astonishing numbers of pre-sales reservations. It will be the iPhone of the automotive world. People will sell reservation positions on eBay.

    There’s a reason Tesla opted for commodity batteries.

  7. Robster says:

    Might have read it and forgot. Is the Model X using the same battery chemistry as the Model S? Meaning no advanced chemistry 3 years after the Model S?

    1. Phr3d says:

      Looking at Elon’s face as he answers Q&A at investors video is slightly telling.. asked when we can expect to see 4000mW batteries replacing the 3200mW, he tries to redirect, then says that it would require a system change in apparent reference to the Model S.

      My ever hopeful take from that is That has much to do with Model X design-times (evolutionary-better car for the same price).