Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Tokyo Stock Exchange  >  Panasonic Corporation    6752   JP3866800000

PANASONIC CORPORATION

(6752)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Asian suppliers' shares slip on Tesla's cheaper battery plan

share with twitter share with LinkedIn share with facebook
09/22/2020 | 08:56pm EDT

SEOUL/SHANGHAI, Sept 23 (Reuters) - Shares of Asian battery suppliers fell on Wednesday after Tesla Inc outlined a plan to halve the cost of its electric vehicle batteries and bring more production of the key auto component in-house.

The fortunes of battery makers in South Korea, Japan and China are linked to Tesla, the EV market leader, as they supply its factories in Nevada and Shanghai.

Tesla CEO Elon Musk said on Tuesday the carmaker aims to lower electric vehicle prices to $25,000 each by producing new batteries with cheaper costs and longer range.

Musk said that it will take about three years to fully achieve this goal-- disappointing investors and wiping $50 billion off its market value -- but analysts said plans for in house production would put pressure on suppliers to lower prices.

"Tesla will have more power in negotiating prices and therefore overall battery costs will fall further," said Rho Woo-ho, an analyst at Meritz Securities.

Shares in South Korea's LG Chem finished 1.4% lower after falling as much as 5.5% while Panasonic ended down 3.7% and China's CATL was down 1.7%.

A Panasonic spokeswoman said the company is "considering a variety of options" when asked if Panasonic would partner with Tesla on new cell production, but added that nothing has been determined at this time.

"We value our relationship with Tesla and look forward to enhancing our partnership," the company said.

LG Chem declined to comment. A source familiar with the company said it is open to cooperating with Tesla on the new batteries.

CATL said in a statement it also planned research and investment in nickel rich chemistry, large cells and integrated structure, which are part of Tesla's technology development roadmap, and saw them as key factors in making electric vehicles mainstream.

'INSANELY DIFFICULT'

Tesla said it plans to achieve 100 gigawatt hours of internal battery capacity in 2022 and 3,000 gigawatt hours by 2030 -- roughly 85 times greater than the capacity of its Nevada plant by 2030.

"This 100 gigawatt hours are supplemental to what we buy from suppliers," Musk said, reiterating that Tesla will continue to use its existing cell suppliers.

Tesla currently produces batteries in partnership with Panasonic at its Nevada factory, while LG Chem and CATL supply cells to its Shanghai factory.

Tesla said it has started ramping up production of its new batteries at a pilot line near its vehicle plant in Fremont, California, but the production yield is not high.

"It is insanely difficult to scale up," Musk said at the company's closely watched "Battery Day" presentation. "There is a clear path to success but a ton of work to do," he said.

Experts had mixed responses over whether Tesla will be able to live up to its aim of mass producing the bigger new batteries.

"Tesla's new batteries are possible at lab levels, but mass production is impossible," said Cho Jae-phil, a professor at Ulsan National Institute of Science and Technology who worked previously at Korean battery maker, Samsung SDI.

However, South Korean battery expert and professor Park Chul-wan was more optimistic.

"Once Tesla succeeds in mass-producing the new cells, other battery vendors will find it difficult to catch up. It will be difficult to imitate the technology," he said.

(Reporting by Hyunjoo Jin in Seout and Yilei Sun in Shanghai and Timothy Kelly; Additional reporting by Heekyong Yang and Cynthia Kim in Seoul; editing by Richard Pullin and Jason Neely)


Stocks mentioned in the article
ChangeLast1st jan.
CONTEMPORARY AMPEREX TECHNOLOGY CO., LIMITED 2.99% 247.17 End-of-day quote.132.30%
LG CHEM, LTD. -6.14% 611000 End-of-day quote.92.44%
LG CORP. -3.56% 67800 End-of-day quote.-8.13%
MERITZ SECURITIES CO., LTD. -2.95% 3290 End-of-day quote.-13.19%
PANASONIC CORPORATION 4.94% 960.7 End-of-day quote.-6.68%
SAMSUNG ELECTRONICS CO., LTD. -2.58% 56600 End-of-day quote.1.43%
SAMSUNG SDI CO., LTD. 2.43% 442000 End-of-day quote.87.29%
SDI CORPORATION 1.69% 60.3 End-of-day quote.-7.09%
SDI GROUP PLC 2.13% 72 Delayed Quote.-7.10%
TESLA, INC. -5.55% 388.04 Delayed Quote.363.80%
share with twitter share with LinkedIn share with facebook
All news about PANASONIC CORPORATION
10/30Japan stocks fall, post biggest weekly loss in 3 months on virus worries
RE
10/29Japanese shares slump on virus worries, mixed earnings
RE
10/29Japan's panasonic shares rise 4.4% after saying to develop new battery for te..
RE
10/29Japan's panasonic shares untraded with glut of buy orders after saying to dev..
RE
10/29Panasonic beats forecasts, developing new battery cell for Tesla
RE
10/29Panasonic beats forecasts, developing new battery cell for Tesla
RE
10/29UPDATE1 : Panasonic's net profit halved in April-Sept. due to pandemic
AQ
10/29PANASONIC : net profit halved in April-Sept. due to pandemic
AQ
10/29PANASONIC : Urgent Headline News
AQ
10/27Toyota-Panasonic battery JV to boost efficiency to catch up with Chinese riva..
RE
More news
Financials
Sales 2021 6 543 B 62 491 M 62 491 M
Net income 2021 96 958 M 926 M 926 M
Net Debt 2021 53 000 M 506 M 506 M
P/E ratio 2021 23,4x
Yield 2021 2,63%
Capitalization 2 242 B 21 434 M 21 409 M
EV / Sales 2021 0,35x
EV / Sales 2022 0,34x
Nbr of Employees 246 512
Free-Float 90,8%
Chart PANASONIC CORPORATION
Duration : Period :
Panasonic Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends PANASONIC CORPORATION
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 19
Average target price 1 037,24 JPY
Last Close Price 960,70 JPY
Spread / Highest target 45,7%
Spread / Average Target 7,97%
Spread / Lowest Target -30,3%
EPS Revisions
Managers
NameTitle
Kazuhiro Tsuga President, CEO & Representative Director
Shusaku Nagae Chairman
Hirokazu Umeda CFO, Director & Managing Executive Officer
Yoshiyuki Miyabe Chief Technology & Information Officer
Masayuki Matsushita Vice Chairman
Sector and Competitors
1st jan.Capitalization (M$)
PANASONIC CORPORATION-6.68%21 434
SONY CORPORATION17.20%102 314
LG ELECTRONICS INC.16.50%12 532
TCL TECHNOLOGY GROUP CORPORATION34.90%11 676
SHARP CORPORATION-28.78%7 009
SHENZHEN MTC CO., LTD.73.28%4 050