Business News

Panasonic sold its whole stake in Tesla for $3.6 billion in order to obtain funds

Spread the love

Panasonic has sold its whole stake in electric vehicle (EV) manufacturer Tesla for about $3.6 billion. As of March 2020, the Japanese electronics conglomerate, which also has a battery plant alongside Tesla, owned $730 million in the EV maker’s stock. According to a Panasonic filing, the company had decreased this amount to zero by March 2021. Tesla’s stock value has grown fivefold in the year since Panasonic sold its interest in the EV company.

Panasonic is one of Tesla’s biggest battery suppliers. However, the two companies’ relationship has been difficult. Elon Musk, the CEO of Tesla, has publicly urged Panasonic to increase its battery manufacturing.

“The sale was part of a review of Panasonic’s cross-shareholdings policy in accordance with corporate governance code guidelines and won’t impact upon the company’s relationship or partnership with Tesla,” Panasonic spokesperson Yayoi Watanabe stated, according to Bloomberg.

She went on to say that the Japanese electronics behemoth had notified Tesla of the sale. She stated that the proceeds will be utilised to invest in future growth.

According to Bloomberg, Panasonic would use the proceeds from the sale of its Tesla share to support its $7 billion acquisition of artificial intelligence software company Blue Yonder, citing a Nikkei storey.

Panasonic has launched a two-year quest to create additional batteries for EV producer Tesla under its new President and CEO Yuki Kusumi. It intends to invest billions of dollars in areas that will make the company more efficient at what it does.

“Better efficiency in operations such as manufacturing will increase Panasonic’s ability to generate cash, in turn freeing up hundreds of billions of yen to direct toward new initiatives, including mergers and acquisitions,” Yuki Kusumi, had stated the global news platform.

Panasonic purchased Blue Yonder in early 2021 in order to simplify its operations. “With the Arizona-based company’s software and its own sensor technologies, Panasonic can analyse site operations for inefficiencies, such as when workers are being left idle between tasks,” Kusumi adds.

NEWS SOURCE

ALSO READ : Policybazaar expands into insurance brokerage, adds 15 retail stores

Recent Posts

As Ola’s Bhavish Aggarwal Faces Criticism, Zomato’s Deepinder Goyal Receives Praise for PR Savvy

The contrasting public images of two prominent Indian startup founders, Zomato's Deepinder Goyal and Ola's…

2 months ago

Singham Again Trailer Launch: What to Expect

The excitement is palpable as Ajay Devgn and director Rohit Shetty gear up for the…

2 months ago

Hardik Pandya Impresses with No-Look Ramp Shot and All-Round Performance in India’s First T20I Win Against Bangladesh

Hardik Pandya showcased his prowess as an allrounder in T20 cricket, contributing significantly with a…

2 months ago

New Haryanvi Song “Bahu Chaudhariya Ki” Launched by Aman Jaji and Pranjal Dahiya

HR Beat Production has unveiled its latest Haryanvi hit, "Bahu Chaudhariya Ki," featuring artists Aman…

2 months ago

Apple’s iPhone 16 Pro Max: Improved Battery Life and Camera Features, but Missing Key AI Updates

Apple's highly anticipated iPhone 16 series is set to launch on Friday, with the flagship…

2 months ago

Music Director Vipin Reshammiya, Father of Himesh Reshammiya, Passes Away at 87

Vipin Reshammiya, father of Himesh Reshammiya, has passed away at the age of 87. He…

2 months ago

This website uses cookies.