It’s not surprising that Tesla Model 3 has been garnering an immense level of demand, so much so that Panasonic, its sole battery supplier, it struggling to keep up in terms of its production capacity.
Chief executive of Panasonic, Kazuhiro Tsuga, revealed that, “Demand would soon exceed our production capacity if Tesla’s sales go smoothly.” This follows Panasonic’s call to reduce its profit guidance and invest in battery production capacity.
The battery supplier was initially set to invest $1.6 billion in Tesla’s Gigafactory early this year, however, the increasingly high demand for the Model 3 pushes Panasonic to move up its investment plan, if Tesla demands it.
Tesla is aiming to reach 34 GWh of battery production by the year 2018 and Panasonic isn’t one to crush Tesla’s dream as it has invested a large sum in its equipment.
If Tesla acquires the approval for its proposed SolarCity, Panasonic will be helping out in this process, as well. Similar to the Gigafactory 1, Panasonic will be developing the solar cells which will be utilized in the SolarCity’s solar products.