Tesla Sales Slump Prompts Panasonic To Delay $4 Billion US Battery Plant Expansion: Report
Panasonic is delaying the expansion of its $4 billion battery plant in De-Soto, Kansas, due to sluggish sales at Tesla, its primary customer. The plant, which aims for a production capacity of 30 Gigawatt-hours by 2027, will begin production soon, but a new timeline is yet to be established. Tesla has faced declining sales in various markets, prompting concerns among investors, with a shareholder meeting scheduled for November 6.
Panasonic Holdings Corp PCRFF PCRHY is delaying its plans to scale up operations at its second plant in the U.S., as customer Tesla Inc. TSLA is grappling with sluggish sales figures.
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What Happened: The company will delay its plan to reach the full production capacity of 30 Gigawatt-hours by 2027 at its De-Soto, Kansas, plant, Nikkei Asia reported on Friday.
The $4B plant will begin production soon, although a new date has not been decided as of yet, the report suggests. Panasonic set up its first plant in the U.S. in collaboration with Tesla in the state of Nevada, dubbed the Nevada Gigafactory, in 2014.
Why It Matters: Tesla sales have taken a hit in the past year as the company recorded poor sales figures in multiple markets. The company also experienced double-digit drops in sales in Denmark and Sweden.
The company has also been under fire for CEO Elon Musk's feud with President Donald Trump over the latter's Big, Beautiful Bill, which Musk says would add trillions to the U.S. debt deficit.
Meanwhile, Tesla investors have expressed concerns with the company's dwindling sales, as over 27 major shareholders urged the Tesla BoD to hold its annual shareholder meeting, which the company says it will hold on November 6th this year.
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