Finance & Markets

Gigafactory Of Tesla Might Get More Investment As Panasonic Gears Up For The Round

Panasonic might think about further investment in the call of Tesla Gigafactory, if required by the manufacturer of electric vehicles in the US, said on Monday the executive of Japanese conglomerate.

Investments will exceed $1.6 Billion, which Panasonic contributes to the car battery plant and works together with Tesla in Nevada USA.

“Of course, we would consider additional investments if they asked to do so,” said Yoshio Ito, director of the automotive business at Panasonic at a press while answering the question about the chances of new investments taking this opportunity into account.

“Panasonic’s initial investment in Gigafactory is almost complete, and the Japanese electronics maker has not made a decision on the promise of new funds,” Ito said.

The comments come after Tesla achieved its goal of producing 5,000 electric model 3 sedans, set by Chief Executive Elon Musk, two factory workers told Reuters.

The production of model 3, which began in July last year, faced several problems, including excessive dependence on automation creating bottlenecks in the production of batteries.

Meanwhile, the American company spends money, as it increases its conveyor line and works on such projects such as the SUV Model Y crossover.

Its free cash flow, an indicator of financial health, rose to a negative $1 Billion, From the last quarter reporting of negative $277 Million, with the exception of system costs for its solar business.

Musk said the company would not need to look for money in 2018, but Wall Street analysts expect a capital increase this year.

Panasonic is the exclusive supplier of battery cells for current models of Tesla production in Japan, as well as in Gigafactory worth $5 Billion.

Last week, Ito said at a Panasonic general meeting that the restoration of the production of model 3 led to a periodic shortage of batteries.

Arpit Mehta

Arpit is a well ripened fruit in the field of finance and markets. When it comes to numbers, nobody can catch this guy’s hand. Needless to say that he does not require a calculator, he himself is the calculator for the Market Global News’ team. In his free time, you will find him grabbing a cup of coffee with his friends.

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