Panasonic says Tesla business to be profitable, boosts profit outlook

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Panasonic, which makes batteries for Tesla, raised its full-year operating profit outlook by more than a half and said the batteries would now be among its money makers

After several years of production troubles and delays at Tesla, Panasonic is beginning to see its decade-old partnership with the U.S. company become a profit driver.

“From the next business year we want to end the question of whether business will be profitable or not,” Chief Financial Officer Hirokazu Umeda said on a call. Panasonic plans to start test production for the new line - for Tesla’s 4680 battery - in the financial year beginning April 1, Umeda said. Its new forecast of 230 billion yen for the year to end-March - up from 150 billion yen - is still 22% below the previous year.Under outgoing Chief Executive Kazuhiro Tsuga, Panasonic has shifted away from its low-profit home electronics business to focus on housing fixtures, car electronics and batteries for electric vehicles.

 

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