Tesla Motors Sees $30 Million Investment From Battery Maker Panasonic

rated by 0 users
This post has 5 Replies | 1 Follower

Top 10 Contributor
Posts 26,356
Points 1,191,585
Joined: Sep 2007
ForumsAdministrator
News Posted: Thu, Nov 4 2010 12:33 PM
These days, getting funding for a project is rather difficult. A lot more difficult than it once was, that's for sure. But it's pretty clear that Panasonic believes in what Tesla is going after, as they have just set aside $30 million to invest in Tesla.

The two companies already have an existing relationship, and it definitely just became stronger. Panasonic purchased $30 million worth of common stick in a private placement at a price of $21.15 per share, and if you were wondering why Panasonic -- a company typically associated with televisions and cameras -- would invest in a car company, here's the deal. Panasonic just so happens to be the world's leading battery maker, and Tesla only makes electric vehicles. Seems a lot clearer now, doesn't it?


Tesla currently uses Panasonic battery cells in its advanced battery packs and has collaborated with Panasonic  on the development of next generation battery cells designed specifically for electric vehicles. While Tesla's current battery strategy incorporates proprietary packaging using cells from multiple battery suppliers, Tesla has selected Panasonic as its preferred lithium-ion battery cell supplier for its battery packs.

Hopefully, this investment will help Tesla get even more vehicles on the road. Electric cars sound great in theory, but until they hit critical mass, it's unlikely that the infrastructure will be erected to keep up.

Panasonic Invests $30 Million in Tesla: Companies Strengthen Collaborative Relationship

PALO ALTO, Calif.--(BUSINESS WIRE)-- Panasonic Corporation and Tesla Motors (NASDAQ:TSLA) today announced that Panasonic has invested $30 million in Tesla. The investment was made through the purchase of Tesla common stock in a private placement at a price of $21.15 per share. The investment builds upon a multi-year collaboration of the two companies to accelerate the market expansion of the electric vehicle.

Panasonic is the world's leading battery cell manufacturer and a diverse supplier to the global automotive industry. Tesla currently uses Panasonic battery cells in its advanced battery packs and has collaborated with Panasonic on the development of next generation battery cells designed specifically for electric vehicles. While Tesla's current battery strategy incorporates proprietary packaging using cells from multiple battery suppliers, Tesla has selected Panasonic as its preferred lithium-ion battery cell supplier for its battery packs.

"Panasonic aims to be the number one Green Innovation Company in the Electronics Industry by 2018, the 100th anniversary of our founding," said Naoto Noguchi, President of Energy Company, a unit of Panasonic responsible for the battery cell business. "Our sophisticated lithium-ion battery cell technology, combined with Tesla's market-leading EV powertrain technology, helps us fulfill this goal by promoting sustainable mobility. We are proud to strengthen our relationship with Tesla Motors."

"It is an honor and a powerful endorsement of our technology that Panasonic, the world's leading battery cell manufacturer, would choose to invest in and partner with Tesla," said Tesla CEO and cofounder Elon Musk. "Panasonic offers the highest energy-density cells and industry-leading performance with cutting edge Nickel-type cathode technology. We believe our partnership with them will enable us to further improve our battery pack while reducing cost."

In addition to producing its own vehicles, Tesla also builds electric powertrains, including battery packs, for other automobile manufacturers. Panasonic and Tesla intend to explore joint marketing and sales of battery packs that would be designed and assembled by Tesla using Panasonic's battery cells.

About Panasonic

Panasonic Corporation is a worldwide leader in the development and manufacture of electronic products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated net sales of 7.42 trillion yen (US$79.4 billion) for the year ended March 31, 2010. The company's shares are listed on the Tokyo, Osaka, Nagoya and New York (NYSE:PC) stock exchanges. For more information on the company and the Panasonic brand, visit the company's website at http://panasonic.net/. 
  • | Post Points: 50
Top 10 Contributor
Posts 8,686
Points 104,335
Joined: Apr 2009
Location: Shenandoah Valley, Virginia
MembershipAdministrator
Moderator

Good to see that Electric cars have a chance to flourish. I'd love to own one of them.

Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

  • | Post Points: 5
Top 10 Contributor
Posts 5,053
Points 60,715
Joined: May 2008
Location: U.S.
Moderator
3vi1 replied on Fri, Nov 5 2010 8:10 AM

This makes me wonder if the Tesla CEO's been badmouthing hydrogen fuel cells all this time to specifically get this investment.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

++++++++++++[>++++>+++++++++>+++>+<<<<-]>+++.>++++++++++.-------------.+++.>---.>--.

  • | Post Points: 20
Top 10 Contributor
Posts 8,686
Points 104,335
Joined: Apr 2009
Location: Shenandoah Valley, Virginia
MembershipAdministrator
Moderator

3vi1:
This makes me wonder if the Tesla CEO's been badmouthing hydrogen fuel cells all this time to specifically get this investment.

Like any corporation, their motto is: "If you want loyalty, buy a Dog"

They'll say anything, do anything just to get what they want, so that wouldn't surprise me at all.


Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

  • | Post Points: 5
Top 50 Contributor
Posts 3,236
Points 37,910
Joined: Mar 2010
AKwyn replied on Fri, Nov 5 2010 4:54 PM

This does not surprise me at all. Though I expect Panasonic's battery innovations will help Tesla in some way (yes they do make batteries).

 

"The future starts with you; now start posting more!"

  • | Post Points: 20
Top 10 Contributor
Posts 8,686
Points 104,335
Joined: Apr 2009
Location: Shenandoah Valley, Virginia
MembershipAdministrator
Moderator

TaylorKarras:
yes they do make batteries

I use them too. They're on sale around here for less than the two big companies batteries are. (they seem to last as long too)

I've been buying Panasonic stuff for a very long time. The most recent was a component 7.1 surround sound Stereo/DVD system that sounded good, but then I had a chance to replace it with a really nice Bose system for several hundred bucks off the price. So, I ended up giving the Panasonic setup to my Nephew and he loves it.

They make good stuff.

Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

  • | Post Points: 5
Page 1 of 1 (6 items) | RSS