Tesla, Panasonic mull expansion stop for Gigafactory

April 12, 2019 //By Christoph Hammerschmidt
Tesla, Panasonic mull expansion stop for Gigafactory

Falling margins in the battery industry, financial problems at Tesla and uncertainty about future demand for electric cars have led to the decision not to expand, the newspaper reports without any sources.

Tesla had to report a decline in sales for the first quarter of 2019. Fewer cars than planned were delivered.

According to previous plans, the capacity of the Gigafactory is to be increased from 35 to 54 GWh, according to a report in the Japanese newspaper Nikkei. According to this report, however, Panasonic is now in favour of Tesla cutting back its investments in the new battery plant in Shanghai for the time being. Instead, Tesla should initially provide technical support at the Shanghai site and purchase batteries from the existing factories.

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