Tesla and Panasonic freeze investments
The electric car company and electronics giant Panasonic are suspending plans to expand a battery plant due to weak demand for the vehicles. Japan-based Panasonic had been seen pumping as much as US$1.4 billion into the plan to boost Nevada production by around 50 per cent.
Tesla and partner Panasonic are delaying further investment in a $4.5 billion Gigafactory outside Reno, Nevada. Shares fall nearly 3 percent on the news.
Stocks impacted: Tesla (TSLA), Panasonic (PCRFY)
The two companies froze a plan to boost capacity of the Gigafactory 1 battery factory in the US state of Nevada «as concerns mount on Wall Street about weakening demand at Elon Musk's car company». It is also reported that Panasonic will suspend planned investment at Tesla's new Shanghai plant. Instead, it will provide technical support and a small number of batteries from the Gigafactory. Tesla is committed to buying batteries for the cars built at the Shanghai factory from a number of makers.
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