Panasonic reviewing further investment in Tesla Gigafactory

TOKYO/BENGALURU - Panasonic Corp and Tesla Inc are holding off on further investment in the U.S. electric carmaker’s Nevada Gigafactory while they squeeze more out of existing resources and study market demand, the companies said on Thursday.

Tesla, whose shares fell nearly 3 percent in early trading, said it would continue to invest in the Nevada plant as need be but believed more output could be gained from its existing resources than previously thought.that financial issues had led the companies to rethink plans to expand the capacity of Gigafactory 1 by another 50 percent next year.

“Watching the demand situation, Panasonic will study additional investments over 35GWh in collaboration with Tesla.” Chief Executive Elon Musk also said in November the U.S. company would manufacture all its battery modules and packs at its new Shanghai factory and planned to diversify its sources.

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