Panasonic promises to keep up with Tesla Model 3 demand

Panasonic is ready to put in the work and the money to make sure they meet the demand for batteries of the Tesla Model 3. Panasonic is pouring in US$1.6 billion into the Gigafactory needed to for the production of the batteries. The Japanese electronics company promises it will “do [its] best” to speed up investment so Tesla can meet its accelerated production goals. Right now, Tesla plans to make 500,000 cars per year by 2018 instead of 2020.

It doesn’t come as a surprise that Panasonic is willing to spend on this partnership as they also stand to profit from the flood of Model 3 sales. This move also shows a major shift in strategy for Panasonic as this’ll have them moving away from being dependent on the volatile consumer electronics market and into the relatively stable car industry. We can’t say yet if the Model 3 will fare well in the market but this gives Panasonic a way in to the industry.

Source: Engadget