Tesla enters a three-year pricing deal with Panasonic for battery cells

17.06.2020 - Petr Mazaylo
Tesla enters a three-year pricing deal with Panasonic for battery cells

Tesla Inc. (TSLA) said on Tuesday that it had signed a three-year pricing agreement with Japan’s Panasonic Corp. (6752.T) for the manufacturing and supply of lithium-ion battery cells at the Gigafactory in Nevada.   

Tesla said that the agreement is effective from April 1 until March 31, 2023, which sets the specific terms between the two parties for pricing, planned investments, and new technology. It also determines Panasonic’s production capacity commitments and Tesla’s purchase volume commitments over the first two years of the agreement. The deal’s financial terms were not disclosed.

“Sentiment was positive across our meetings; investors appear increasingly willing to look through near-term noise and focus on future (2021+) revenue and earnings growth drivers,” Robert W. Baird & Co.’s Senior Analyst Ben Kallo wrote in a note to investors. He adds, “This is reasonable, in our view, given the numerous projects underway which could meaningfully contribute to growth over time. Nearer term, the upcoming Battery Day and subsidies in Germany were areas of focus.”

In November 2010, Panasonic invested $30 Million in a private placement of Tesla common stock.

 

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from Umarkets.com or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue
×

Help with deposit?