"Don't Trade The Market Alone!" Electronic Equities Traders Since 1992
Wednesday, February 26, 2014
Tesla, Panasonic in talks on $1 Billion Factory
Disclosure: Long $TSLA
By Mike Ramsey
Panasonic Corp., now the primary battery supplier for Tesla
Motors Inc.'s$71,000-and-up electric cars, is in
talks about investing in a nearly $1 billion battery
factory in the U.S., according to Japanese business newspaper the Nikkei.
Panasonic said in a statement it was "considering various options
to strengthen our ties" with Tesla (TSLA) .
Tesla shares hit a record high of $248 on Tuesday ahead
of an expected announcement of the battery-production partnership, in
which the company would carve out a business making advanced batteries
for itself and others.
Panasonic shares were up 7% in early trading in Tokyo
Tesla this week is expected to announce with corporate partners a plan
to build a factory that would produce finished batteries from raw
materials instead of components, lowering its costs.
Morgan Stanley auto analyst Adam Jonas said in a
note on Tuesday the company "could become the world's largest producer
of Li-ion batteries" based solely on its own automotive needs. He said
Tesla could also supply batteries for energy storage for electric power