Consumer electronics maker Panasonic is cozying up to Tesla with a $30 million investment, in exchange for a 2% stake.
Although Panasonic and Tesla have worked together in the past, under the new partnership, the duo will closely collaborate on the development and marketing of new Tesla battery packs that feature Panasonic lithium-ion cells.
“Panasonic offers the highest energy-density cells and industry-leading performance with cutting edge Nickel-type cathode technology.” Tesla CEO Elon Musk said in a statement late Wednesday, “We believe our partnership with them will enable us to further improve our battery pack while reducing cost.”
Under the terms of the deal, Panasonic purchased Tesla’s stock in a private placement for a price of $21.15 a share.
The structure of this alliance is not out of the ordinary for the electric car maker, which has been richly funded but deficient in profits. Over the past two years, Tesla has strengthened strategic relationships with investment deals.
Notably, in May, Tesla and Japanese automaker Toyota announced a major partnership to cooperate on the development of new electric vehicles. As part of the deal, Toyota agreed to plunk down $50 million for Tesla’s common stock. And Toyota was not the first major corporation to bet on Elon Musk’s roadster. In 2009, Daimler invested an equivalent sum in exchange for a 10% stake and technology, according to reports.
Although Tesla is moving forward with plans to ramp up vehicle production over the next few years, the company has also placed a greater emphasis on its powertrain business, which services other car manufacturers. Last month, Tesla disclosed it had a $60 million contract to supply parts to Toyota for the production of the upcoming electric RAV4.
Clunky battery parts may seem relatively boring when compared to Tesla’s sleek roadsters, but it may be the key to finding their (so far elusive) path to stable profitability.
Tesla Motors, founded by Elon Musk, Marc Tarpenning and Martin Eberhard, is a company that produces a high-performance electric sports car, and is backed by a number of high-profile investors. Introduced in June 2006 to the public complete with a test drive by California Governor Arnold Schwarzenegger, the Tesla Roadster is able to go from 0 to 60 in less than 4 seconds (competitive with Porsche and Lamborghini models), while also delivering 100 miles per gallon (double the...
Panasonic Corporation of North America (PNA), based in Secaucus, NJ, is the principal North American subsidiary of Osaka, Japan-based Panasonic Corporation (NYSE: PC) and the hub of its branding, marketing, sales, service, product development and R&D operations in the U.S. and Canada. For nearly 50 years, Panasonic has delighted American consumers with innovations for the home and business. Panasonic’s consumer electronics and technology products range from award-winning VIERA High Definition Plasma and LCD TVs and LUMIX Digital Cameras to ruggedized...
Elon Musk (born June 28,1971) is an entrepreneur and a co-founder of PayPal, Tesla Motors and Space Exploration Technologies. He is chairman/CEO of Tesla Motors and SpaceX, and chairman of SolarCity. Musk was born and grew up in South Africa, the son of a South African engineer and a Canadian-born mother who has worked as a New York City dietitian and modeled for fun. His father inspired his love of technology and Musk bought his first computer at age 10...
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