Japan’s Panasonic to invest US$700 mn for Tesla battery production

Follow us on Google News:
 Japan’s Panasonic to invest US$700 mn for Tesla battery production
Image source: Shutterstock

Highlights

  • Panasonic will produce next-gen lithium-ion batteries for Tesla from 2023.

  • The Panasonic (OTC: PCRFY) stock was trading at around US$11.3 on Monday. 

  • Tesla, Inc. (NASDAQ: TSLA) stock was priced at around US$877.

 Japan’s Panasonic Corp will produce next-generation lithium-ion batteries for Tesla from 2023, Reuters reported. It will invest around 80 billion Yen (US$705 million) for the project.

Panasonic said in a statement that it is exploring options for mass EV battery production. It also plans to set up a test production line this year but has not been finalized.

The Tesla, Inc. (TSLA) stock was down around 7% after the news on Monday morning.

Also Read: Top 5G stocks to explore as US rolls out the service

The batteries will have five times more energy capacity for an extended range. They will also be bigger than the current ones supplied to Tesla as part of efforts to reduce production costs.

Also Read: Falling prices stoke a winter of discontent for the crypto market

Panasonic to invest US$700 million to produce EV batteries for Tesla.

Source - pixabay

Also Read: In tit-for-tat move, US suspends 4 Chinese airlines in Omicron row

Key supplier of Tesla batteries

 Panasonic is a key supplier of Tesla batteries. In October last year, the company unveiled a new battery that is five times more powerful than the existing EV batteries.

 It plans to produce them at a plant in Western Japan. It targets to manufacture batteries with a total output of 10 GW annually. 

Tesla will announce its fourth-quarter and full-year 2021 financial results on January 26. It is expected to reveal its battery product roadmap for the year during the earnings call. Panasonic Corp’s (OTC: PCRFY) ADR stocks were down 0.18% to around US$11 on Monday morning. 

 Also Read: Top EdTech stocks to explore in first quarter of 2022

 Financials

Panasonic posted net sales of 3,533 billion Yen or US$31 billion for the six months ended September 30, 2021, compared to 3,059 billion Yen or US$26.9 billion in the same period of 2020. Its net profit was 161 billion Yen or US$1.4 billion compared to 57 billion Yen a year ago. 

On the other hand, Tesla earned revenue of US$36 billion for the nine months ended September 30, 2021, versus US$21 billion for the same period a year ago. Its net income was US$3.3 billion compared to US$0.566 billion for the first nine months in 2020.

Also Read: REITs with over 5.5% dividend yield to explore

Bottomline

The EV market is growing rapidly as more new players join the fray. Renault SA, Nissan Motor Co, and Mitsubishi Motors Corp are also planning to increase investment in EVs.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK