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.
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Hello, my name is Anuj Boruah. I am quite interested in writing about current events in business, finance, and the economy. I work as a newswriter at Reviewminute.