Panasonic speculates bigger EV battery to attract other auto manufacturers besides Tesla

Apr. 14, 2022 6:52 AM ETTesla, Inc. (TSLA), PCRFYBy: Khyathi Dalal, SA News Editor70 Comments

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  • Panasonic (OTCPK:PCRFY) foresees the launch of a bigger electric vehicle battery, a lithium-ion 4680 battery, from its Wakayama factory in western Japan wherein it plans to introduce two production lines for the battery.
  • While Tesla (NASDAQ:TSLA) CEO Elon Musk has said the 4680, which is not scheduled for mass production until next year, will help bring down the price of a Tesla car by ~40%, the Japanese company is seeking to diversify its business from Tesla as the battery may attract other manufacturers also.
  • Yuki Kusumi, newly appointed CEO in 2020, stated that the company will invest $4.8B over the upcoming three years with 2/3rds earmarked for EV batteries, supply chain software and air conditioners.
  • Since the time the former head of automotive business Kusumi is appointed in the new role, the company stock price has garnered 17% as his plans reflect Panasonic's desire to return to robust growth after aggressive streamlining.
  • The company targets operating profit of ¥1.5T, up 63%from the past 3-year period.
  • Panasonic also established a JV with Toyota in 2020 and is the world's third-largest producer of EV batteries.
  • Financial Times cites a Nomura analyst: "Efforts undertaken since Kusumi took office to strengthen the operational capabilities of individual businesses have yielded some results."

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