Tesla And Panasonic Are No Longer Producing Solar Cells Together

Tesla Inc.’s (NASDAQ: TSLA) joint venture with its Japanese partner Panasonic to produce solar roof tiles has come to an end.

What Happened

Tesla is ending its joint venture with Panasonic Corp (OTC: PCRFY) after years of trying to produce solar cells in their New York state Gigafactory 2, according to the Nikkei Asian Review. The companies will keep working together on batteries for Tesla’s electric vehicles.

The Tesla-Panasonic joint venture began in 2016. The review reported that Tesla wanted its solar tiles to look like regular black roof tiles, but the cells manufactured by Panasonic failed to meet expectations.

Why It Matters

Tesla and Pansonic’s strained relationship had led to a rise in media reports that the electric vehicle manufacturer was looking to manufacture its own batteries.

Panasonic had refused to make batteries at Tesla’s Shanghai plant. After that, Tesla signed a two-year agreement with China-based CATL to deliver batteries for Tesla’s Model 3s.

Tesla’s energy operations brought in $1.53 billion or 6% of its total revenue in 2019. 

Price Action

Tesla shares traded 1.11% lower at $791 in the after-hours session on Tuesday. The shares had closed the regular session 4.06% lower at $799.91.