Tesla Inc and Panasonic Corp are suspending plans to expand the capacity of their US$4.5 billion (RM18.5 billion) USA plant in the face of uncertain demand for electric vehicles, the Nikkei reported yesterday.
Panasonic's hesitation to pour more money into Gigafactory may be less of an indictment of Tesla, which reported a significant slowdown in the first quarter of this year, than it is on the status of EV and battery production. Completion isn't expected until sometime in the next decade. In July 2018, Panasonic merely stated that further investments in the Gigafactory would be considered if Tesla so wished.
Tesla Motors has been through seemingly dozens of hiring sprees and decelerations, as it's moved from engineering, to manufacturing, to marketing, to delivery, to customer service, and, based on the trends we're seeing in the company's hiring activity, back to engineering again in an indication that the company is returning to the proverbial drawing board. This seemed to confirm reading the report as potentially misguided because we had heard for the first time of involvement of Panasonic at Tesla's China Gigafactory.More news: Redmi Pro 2 leaked: Snapdragon 855 and cut-hole display
Tesla stock fell around 3.8% on Thursday after it announced that it was reviewing the expansion plans for the battery gigafactory with its joint-venture partner, Panasonic. Instead it said that it would provide technical support plus a small number of batteries from the Gigafactory. Currently, it's at around 35 GWh. The company had reiterated its annual delivery forecast of 360,000 to 400,000 cars earlier this month.
Apparently, losses due to the delay in the production of the Model had made the biggest impact on the decision.
"We believe Tesla's vehicle sales are slow because costs are simply too high for consumers", he added. The automaker was the first in the USA to reach the first milestone in the federal tax incentives scheme, meaning that from the beginning of 2019 buyers of the company's EVs only received half of the previous incentive.More news: Everyone is human: Ganguly on Dhoni's on-field argument with umpires
Tesla was down 17% this year through Wednesday.
Panasonic is taking the additional step of suspending further investment in Tesla's new Gigafactory near Shanghai.
"We will of course continue to make new investments in Gigafactory 1, as needed".More news: Joel Embiid gives troubling health update ahead of playoffs