Tesla's Poor 1st Quarter Gives Battery Supplier Cold Feet

Tesla’s lackluster first-quarter deliveries report did more than spook analysts and investors — it also provided the rationale for Panasonic to reevaluate its relationship with the automaker. Japan’s Nikkei Asian Review reports that the battery maker, which partnered with Tesla on the automaker’s Nevada Gigafactory 1, has grown cold feet.

The publication reports the two companies have frozen spending on the Nevada plant, culling plans for an expansion of battery production. Not only that, Panasonic has decided not to invest in Tesla’s Shanghai vehicle/battery production facility.
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Vette71 - 4/11/2019 10:56:33 AM

+6 Boost

Tesla's 2019 second quarter is going to be telling. If there truly are a lot of Q1 production vehicles in transit at the end of Q1 then April registrations should be high. If not and Q2 deliveries don't increase dramatically over Q1 then they have problems. The early adopters have theirs and the general market isn't large enough to meet Tesla's growth expectations.

Truthy - 4/11/2019 11:49:37 AM

+5 Boost

This is very telling. Panasonic after a thorough (something Tesla should try) hands decided to end the partnership. And cancelling the Shanghai investment is even more important considering the potential.
It appears Panasonic has decided not to be tied to Tesla, freeing them to work with other manufacturers with better long term prospects.
Tesla has been late on payments to suppliers and this is likely part of it too.

runninglogan1 - 4/11/2019 11:34:23 PM

-3 Boost

Ended their partnership? Hardly. Read before you spew.

qwertyfla1 - 4/11/2019 12:10:02 PM

+3 Boost

No batteries -no problem just instal Tesla solar shingles on all the cars. Problem solved! Oh wait those aren't available either.

CANADIANCOMMENTS - 4/11/2019 3:18:12 PM

-4 Boost

I am sure another battery maker will step in if Panasonic is truly out. Even if there is a risk of failure, the upside may compel them to try to make a partnership work.

Truthy - 4/11/2019 11:04:06 PM

+7 Boost

Why do you think another battery maker will take up this huge risks after Panasonic, who has invested enormous sums into Nevada and China? They are cutting their loses because they see the future is not good for Tesla.

runninglogan1 - 4/11/2019 11:37:13 PM

-2 Boost

Truthy - Tesla has made clear that they would use a Chinese battery supplier for the Shanghai gigafactory. Panasonic was never in the picture.

CANADIANCOMMENTS - 4/13/2019 4:02:21 PM

+2 Boost

It's amazing how many people can't simple read and understand a news article.

SanJoseDriver - 4/17/2019 3:23:52 AM

+1 Boost

Yup

CarCrazedinCali - 4/11/2019 9:49:07 PM

+4 Boost

I had a bad feeling about Tesla

MDarringer - 4/11/2019 10:56:50 PM

+4 Boost

#IMPLOSION

Moo1 - 4/12/2019 8:08:47 AM

0 Boost

Ups and downs are part of the car business. It's not all doom and gloom for Tesla at this point.