Tesla Motors (TSLA) started its journey about 13 years ago with a vision to encourage sustainable transport. In its initial years, the company collaborated with Japan’s Panasonic to produce the highest energy density EV (electric vehicle) battery packs. Since then, the Tesla-Panasonic partnership has come a long way. Let’s take a look at some key milestones in their relationship.
In 2009, Panasonic signed an agreement to supply lithium-ion battery cells to Tesla Motors for its electric vehicles. In June 2010, Panasonic invested about $30 million in Tesla Motors. Tesla collaborated with Panasonic to develop the next generation of battery cells for EVs. Tesla chose Panasonic as its preferred lithium-ion battery cell supplier for battery packs to be used in Tesla EVs.
In 2011, when Tesla was preparing for the mass production of its Model S, Panasonic entered an agreement with the company to supply cells in 2012. Panasonic assured Tesla of the timely availability of these cells to fulfill all Model S orders. In the coming years, the Tesla-Panasonic partnership deepened with more agreements.
Role in Gigafactory and solar business
In 2014, Tesla started constructing its ambitious Gigafactory in Nevada. Gigafactory is expected to have an annual battery production capacity of 35 GWh (gigawatt-hours). It’s being built in cooperation with Panasonic and other strategic partners. In January 2016, Panasonic revealed that it will invest up to $1.6 billion in the Gigafactory project.
Cost reduction is the key for Tesla to make its Model 3 affordable for a large number of people and generate profit. That’s why Gigafactory is so important for Tesla. It should bring down the cost of Model 3 battery packs with economies of scale.
Note that Tesla’s efforts to mass produce a low-priced EV attracted mainstream automakers’ (IYK) attention lately. In the last few years, General Motors (GM), Ford (F), and Honda (HMC) also accelerated their EV development programs.
Tesla’s recent agreement with Panasonic for the solar energy business (as we discussed in Part 1) made it clear that their association isn’t just limited to cells and battery manufacturing. Panasonic’s investments in Tesla’s automotive and solar energy business show its optimism about Tesla’s future growth potential.
Next, we’ll discuss why Tesla might get support from Trump’s administration.
In its 3Q16 earnings release, AstraZeneca (AZN) projected that its 2016 revenues and EPS will fall 0.0%–5.0% YoY. It also explained its capital-allocation priorities for 2016.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.