Seeking Alpha

Report: Tesla Motors strikes battery plant deal with Panasonic

  • Shares of Tesla Motors (TSLA +2.5%) spike higher after Nikkei reports the automaker struck a battery plant deal with Panasonic (OTCPK:PCRFY).
  • An official announcement from the companies hasn't been made yet.
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Comments (34)
  • EatMyVoltage
    , contributor
    Comments (66) | Send Message
     
    We should look back at all the Seeking Alpha articles and comments about why Panasonic wouldn't be a partner, why Tesla was in trouble because Panasonic isn't on board, etc. Then we can more easily judge their credibility.
    28 Jul 2014, 01:31 PM Reply Like
  • Energysystems
    , contributor
    Comments (1570) | Send Message
     
    You should also see how often Nikkei reports aren't credible. How many times have they written about $S/$TMUS, yet still no deal. I'll believe it when it's reported by one of the companies involved.
    28 Jul 2014, 01:38 PM Reply Like
  • doubleE
    , contributor
    Comments (2523) | Send Message
     
    Nikkei is actually a very credible source with a very good reputation. They don't just make things up. If nikkei says it, it is true.
    28 Jul 2014, 05:27 PM Reply Like
  • Valueseeker
    , contributor
    Comments (1598) | Send Message
     
    No one said no deal. Only the scale of GigaFactory and extent of Panasonic's contribution was in question.
    28 Jul 2014, 05:45 PM Reply Like
  • doubleE
    , contributor
    Comments (2523) | Send Message
     
    The scale of GF is not in question.
    28 Jul 2014, 06:52 PM Reply Like
  • TheBanker
    , contributor
    Comments (1342) | Send Message
     
    It's funny how the more the GF becomes a reality the less we are hearing from Frank. No one uses the term gigglefactory anymore as well.
    29 Jul 2014, 10:39 AM Reply Like
  • Anton Wahlman
    , contributor
    Comments (3043) | Send Message
     
    Tesla said $4 billion to $5 billion was needed for the factory. Tesla raised $2.3 billion. I assume Panasonic is therefore kicking in at least approximately $2 billion then?
    28 Jul 2014, 01:31 PM Reply Like
  • squirrelburge
    , contributor
    Comments (4) | Send Message
     
    I mean, rumor is that Panasonic is putting in 200-300 mm. Where's the other 2 bil come from? This seems like a total failure of a partnership already if this is the case.
    28 Jul 2014, 01:47 PM Reply Like
  • slevental
    , contributor
    Comments (578) | Send Message
     
    @Anton, The article says that $200-300 mil is the 1st investment of Panasonic which can become in the future to investment of up to 1bil. Maybe the rest (another 1.5 bil) will come as a loan from the DOE...
    28 Jul 2014, 01:57 PM Reply Like
  • Bonaire
    , contributor
    Comments (694) | Send Message
     
    That is math. None of the cool kids like math. It is about image. How's my hair again?
    28 Jul 2014, 06:25 PM Reply Like
  • doubleE
    , contributor
    Comments (2523) | Send Message
     
    Actually it is not math. It is reading comprehension. The gigafactory presentation is simple enough. $4 to $5 billion through 2020 with volume production for gen 3 starting in 2017. Why no earth would they need the entire amount upfront. That would poor financial management.

     

    http://bit.ly/1gCWEcD
    28 Jul 2014, 06:58 PM Reply Like
  • stir krazy
    , contributor
    Comments (26) | Send Message
     
    I don't think Panasonic has 2B available to invest
    28 Jul 2014, 01:33 PM Reply Like
  • Bonaire
    , contributor
    Comments (694) | Send Message
     
    They will float a bond. Do you have the phone numbers to MS and GS?
    28 Jul 2014, 06:26 PM Reply Like
  • Frank Greenhalgh
    , contributor
    Comments (2675) | Send Message
     
    Panasonic is necessary for a Tesla, but don't expect much money. So far Panasonic has only committed to $200 million.
    This is a necessary move before the 2Q earnings report. Last time they waved a "Letter of Intent."
    28 Jul 2014, 01:39 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4380) | Send Message
     
    $200 million is completely inadequate. It's entirely possible (and in my opinion highly likely) that previous leaks of that amount were in error by a dropped zero. In other words, I think they should have reported $2B and not $200M. But if true, I think the US market would take it as a sign of non-commitment on Panasonic's part.
    28 Jul 2014, 01:46 PM Reply Like
  • skibbi
    , contributor
    Comments (58) | Send Message
     
    the article link reaffirms 200m initially and a 1bln cap
    28 Jul 2014, 01:58 PM Reply Like
  • doubleE
    , contributor
    Comments (2523) | Send Message
     
    Panasonic's expertise in mass manufacturing of cells is far more important than its money. They are many places tesla can go to find money. There are not too many companies with experience producing billions of the right kind of cells a year. They don't need to build it all at once. 150,000 gen3 a year at 60kwh per vehicle requires 9gwh. Throw in a couple Gwh for solar city and the gigafactory could launch with 11gwh. How big is that ? That would be way bigger than any company's current capacity.
    28 Jul 2014, 02:15 PM Reply Like
  • Dmitry Kovalchuk
    , contributor
    Comments (405) | Send Message
     
    It's not only about the deal itself but about the terms of that deal.

     

    Who knows maybe its just another pump and dump before earnings on Thursday?

     

    Remember we are talking about company with a market cap of 30 billion that sells 7k subsidized cars per quarter. All the positive events for the next few years are already priced in at the current levels in my opinion.
    28 Jul 2014, 01:43 PM Reply Like
  • BillL7
    , contributor
    Comments (18) | Send Message
     
    Here's the actual link to the article. It will be interesting to see if any other sources validate this claim. http://s.nikkei.com/1o...
    28 Jul 2014, 01:45 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4380) | Send Message
     
    Interesting that the article that SA linked to is gone.
    28 Jul 2014, 01:51 PM Reply Like
  • skibbi
    , contributor
    Comments (58) | Send Message
     
    they just linked to page 2 of a headline scroll... lazy and wrong by SA publisher
    28 Jul 2014, 01:56 PM Reply Like
  • fiwiki2
    , contributor
    Comments (2901) | Send Message
     
    Another Tesla ruse, to keep the Bulls drinking the Koolaid……
    28 Jul 2014, 02:01 PM Reply Like
  • Raster
    , contributor
    Comments (681) | Send Message
     
    Another day when my long position keeps making money.....
    28 Jul 2014, 02:39 PM Reply Like
  • fiwiki2
    , contributor
    Comments (2901) | Send Message
     
    Perhaps it's time then to up the anti and buy more.
    28 Jul 2014, 02:47 PM Reply Like
  • Raster
    , contributor
    Comments (681) | Send Message
     
    Don't worry. I bought "more" a long time ago.
    28 Jul 2014, 02:59 PM Reply Like
  • EatMyVoltage
    , contributor
    Comments (66) | Send Message
     
    I realize you are anti-Tesla, but in your context, it is spelled ante, i.e. "up the ANTE and buy more".
    28 Jul 2014, 03:07 PM Reply Like
  • TheBanker
    , contributor
    Comments (1342) | Send Message
     
    I bought more today.
    28 Jul 2014, 03:18 PM Reply Like
  • doubleE
    , contributor
    Comments (2523) | Send Message
     
    $5 billion is the stated investment amount through 2020. However the factory will ramp up in 2017 for gen3. The amount needed through 2017 has never been publicly stated. However it has been said that 2017 production will have at least a 30% cost reduction over current costs. To put things in perspective, a $2 billion investment gives you the biggest li ion factory in the world. So whatever comes on line in 2017 will be pretty big.
    28 Jul 2014, 02:02 PM Reply Like
  • Frank Greenhalgh
    , contributor
    Comments (2675) | Send Message
     
    Tesla will hire 6500 employees to run the Gigafactory?
    If LG and Samsung need that many employees for their Gigafactories in China, I believe they will have an advantage over labor costs for the batteries. Very competitive field batteries.
    28 Jul 2014, 05:13 PM Reply Like
  • doubleE
    , contributor
    Comments (2523) | Send Message
     
    Labor is actually not a very high component of cell cost. It is very American to think that the only reason Asian companies dominate lithium ion manufacturing is cheap labor but the truth is far more complicated than that.
    28 Jul 2014, 05:24 PM Reply Like
  • fiwiki2
    , contributor
    Comments (2901) | Send Message
     
    the truth is far more complicated than that.******* The truth is that every step from mining to leaching/smelting, to manufacturing is virtually unregulated, untaxed, and cheaper.
    28 Jul 2014, 05:53 PM Reply Like
  • philmc38
    , contributor
    Comments (2) | Send Message
     
    I just bought 2k shares of a graphite co. out of Canada to be used possibly for Lithium batteries for Tesla? 2 days and its up 29 % ? symbol is "NGR", TSX exchange.
    28 Jul 2014, 05:21 PM Reply Like
  • mouckpeter@gmail.com
    , contributor
    Comments (2) | Send Message
     
    well philmc that company;s ticker symbol is actually NGC and its on the CVE exchange, for that Canadian graphite company, also there is a lithium mining company in Ohio or Utah that found enough lithium to last for 100 years, its a lithium deposit substantially bigger then china,s im still looking into what company it is. but that lithium mining company will be going in on the giga-factory, I can guarantee that. That discovery alone is one of the top three reasons TESLA is making the factory in the US.
    29 Jul 2014, 05:19 PM Reply Like
  • mouckpeter@gmail.com
    , contributor
    Comments (2) | Send Message
     
    Samsung and LG,s batteries are from Panasonic's patents, Panasonic is the only supplier of li-ion in the world who is big enough to even step into the giga-factory. This deal will happen and I can see all the skeptics out there saying stuff about feeding bulls , but like Panasonic said they are doing a gradual investment option so there is no ten-fold increases over night, not until they officially break ground that is, If I were all of you I would start buying up PCRFY like wild fire. Is going to happen, and the fact that no one executive has sold a single share in over a year is a big thing too.
    29 Jul 2014, 05:19 PM Reply Like
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