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Teslas profitable quarter did not translate for Panasonic

Enlarge / Visitor Inspects a Tesla Co. Model X electric car fitted with Panasonic batteries, on Panasonic Corps showcase at…

 A Tesla with Panasonic Batteries

Enlarge / Visitor Inspects a Tesla Co. Model X electric car fitted with Panasonic batteries, on Panasonic Corps showcase at the IFA Consumer Electronics Show in Berlin, Germany, Friday, September 1, 2017.

Panasonic lost in the third quarter 201

8 $ 65 million in the industry that makes battery cells power Tesla’s electric vehicles according to The Wall Street Journal . The company said it had to add production and hire workers faster than expected when Tesla aggressively collapsed to produce 4,300 model 3 vehicles per week.

In September, the head of the Panasonic Automotive Division stated that the company was about to complete three new production lines at Teslas Gigafactory in Sparks, Nevada, at the end of the year. It would give the total number of battery-like lines at Gigafactory up to 13.

The Model 3 ramp that ate in Panasonic bottom line did not have the same effect on Tesla, which posted its first profitable quarter in several quarters last week. It divides upwards.

Panasonic does not seem that the dramatic cost increase is in vain. According to Reuters, Panasonic CEO Kazuhiro Tsuga says the company intends to continue investing in Gigafactory’s capacity. Tsuga added that Panasonic focuses on building capacity in Nevada before it begins to think of building capacity at Tesla’s planned plant in Shanghai. Tesla bought a plot in the Chinese city earlier this month.

“Investments for capacity above 35GWh mean that Tesla would also need to make significant investments in vehicle production, so we will closely adapt to each other,” said Tsuga, according to Reuters.

Tsuga also commented that he was concerned about the behavior of Tesla CEO Elon Musk, who ran the Securities Exchange Commission (SEC) for allegedly breaking federal securities laws with his tweets. (Musk has recently reached a solution with the SEC which contained conditions that will force him to step down as president of Tesla.)

But Tsuga said that as long as Tesla continues to work without too much controversy, Panasonic is willing to stay a partner. “Although Elon’s comments are unpredictable, we continue to monitor Tesla’s business in order not to guarantee chaos there and will work in line with the company,” said Tsuga, per Reuters.

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