Tesla can rely on Panasonic to maintain up with Mannequin three demand

Tesla can count on Panasonic to keep up with Model 3 demand

Yuriko Nakao/Bloomberg by way of Getty Photographs

Tesla could also be prepared to stump up a variety of money to satisfy brisk demand for the Mannequin three, however it nonetheless cannot do that alone — not when Panasonic is pouring $1.6 billion into the Gigafactory wanted to make the electrical automotive’s batteries. Fortunately, the Japanese electronics big has Tesla’s again. Panasonic tells reporters that the corporate will “do [its] greatest” to hurry up its funding if it is wanted to assist Tesla meet its accelerated manufacturing objectives, which now have it making 500,000 automobiles per yr by 2018 as an alternative of 2020. Whereas the agency needs to get an excellent return on its funding, it additionally does not need to “be a bottleneck” to Tesla’s plans.

It isn’t surprising that Panasonic can be so prepared to open its pockets. The tech big stands to revenue from a flood of Mannequin three gross sales, in fact, however this may be essential to a serious shift in technique. Panasonic is making an attempt to scale back its dependence on shopper electronics like telephones and razors, which do not generate a lot revenue and are topic to risky markets. By shifting extra of its efforts to the automotive business, the tech big will get each extra revenue and comparatively secure demand. The Tesla funding continues to be one thing of a big gamble (we do not understand how nicely the Mannequin three will fare after the preliminary rush), however it might give Panasonic a strong basis for its future.