• 11 hours Trade In Counterfeit Goods Hits Half A Trillion Dollars
  • 17 hours Tesla Struggles To Compete In European Market
  • 1 day China: The New King Of Caviar
  • 2 days Gold Mid-Tiers Rally On Fresh Earnings Reports
  • 2 days Can The British Pound Overcome Brexit?
  • 3 days Is A Gold Breakout Near?
  • 3 days Federal Reserve Downgrades U.S. Growth And Cuts Rate Hikes
  • 4 days Disney Beats Out Comcast In $71.3B Mega-Merger
  • 4 days The Feds Continue To Prop Up Equities Markets
  • 4 days Bejing's Sway In South China Sea Is Fading
  • 4 days Saudis Eye Billions As Stocks Get Emerging Market Boost
  • 5 days Airbnb In Acquisition Mode Ahead Of IPO
  • 5 days Gold Hangs At $1,300 Ahead Of Fed Meeting
  • 5 days Champagne Sales Slow As European Economic Worries Grow Louder
  • 5 days Putin Signs “Digital Iron Curtain” Into Law
  • 6 days Russian Metals Magnate Sues U.S. Over Sanctions
  • 6 days Tesla Looks To Jump Into Indian Market
  • 6 days Global Banks Lay Groundwork To Re-Inflate Asset Prices
  • 6 days Homeowners Experiment With Risky New Investment Trend
  • 7 days U.S. Tech Stocks Look Increasingly Vulnerable
China: The New King Of Caviar

China: The New King Of Caviar

Russia used to be the…

Tesla Looks To Jump Into Indian Market

Tesla Looks To Jump Into Indian Market

Elon Musk is not giving…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. News
  3. Breaking News

Tesla's Cash Burn Puts Panasonic On Edge

Gigafactory

Panasonic is getting increasingly worried about its partner Tesla’s production-riddled, cash-burning ways, and may be less willing to make further commitments to the U.S. company beyond what it has already pledged for the Nevada gigafactory, Panasonic executives told the Nikkei Asian Review.

Tesla and Panasonic are partners in the gigafactory with the Japanese electronics giant committing some US$1.82 billion (200 billion yen) to the US$5-billion project until 2020. After that, however, Panasonic is not yet certain how much more it will commit. The decision, according to the executives, will be “based on a frank assessment of the situation.”

Panasonic is also wary of making any definitive comments regarding plans for a second gigafactory, to be located in China, in which Tesla assumes it will again partner with the Japanese company. However, following a first-quarter conference call that many called bizarre on the part of CEO Elon Musk, Panasonic executives made a point of noting that “nothing is set in stone” and nothing is “solidified yet.”

Tesla reported a record-high operating loss for the first quarter despite equally record-high revenues. Yet the financial and production performance of the EV maker is not the only reason Panasonic is wary of committing billions to the gigafactories. Related: Asian Markets Up On High Oil Prices And Weak Dollar

Another reason, according to the Nikkei Asian Review, is its scar from plasma displays. The company splashed US$4.57 billion (500 billion yen) on plasma display factories only to be forced to shut down the business when LCD displays emerged as the clear winner of this particular competition.

What’s more, in its EV battery business, Panasonic is facing growing competition from Chinese companies and will need to direct substantial resources to this fight. On the one hand, an exclusive partnership with Tesla could benefit the Japanese electronics maker, but on the other, the Chinese rivals are closing partnerships with many carmakers eager to expand in the EV market.

By Irina Slav for Oilprice.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment