Tesla Partners with Panasonic to Develop New Solar Products

Tesla Motors Inc. (NASDAQ: TSLA) and Japanese company Panasonic Corporation have had a deep relationship. The latter is a strategic battery partner at the electric car manufacturer’s Gigafactory and is also an exclusive battery supplier for the Model X, Model S, and Model 3. During the previous week, the electric car company strengthened its ties with the Japanese company and signed future plans to collaborate on the development of new solar products.

On Sunday, Tesla published a blog post stating that both parties have inked a “non-binding letter” to work together for the development and production of photovoltaic modules and cells at SolarCity Corp. Gigafactory located at Buffalo New York. The mentioned deal is definitely dependent on the pending stockholder vote out for Tesla and SolarCity regarding the planned merger deal slated for the following month.

According to the electric car giant’s Chief Technical Officer JB Staubel, the company’s team is excited to strengthen its relationship with the Japanese company Panasonic. The Tesla Chief Technical Officer also thinks that the two companies can collaborate in order to develop and manufacture “high-efficiency, extremely reliable solar cells and modules at the best price” more easily.

Meanwhile, the Vice President of Eco Solutions Company of Panasonic Shuuji Okayama stated in the blog post: “Panasonic PV cells and modules boast industry-leading power generation performance, and achieve high quality and reliability. We expect that the collaboration talks will lead to growth of the Tesla and Panasonic relationship.”

Tesla intends to utilize the photovoltaic modules and cells in a “solar energy system”, which will run “seamlessly” with its Tesla Energy products such as Powerpack and Powerwall. Furthermore, it also intends to roll out integrated sustainable energy solutions for businesses, households, and utilities, with assistance in terms of installation and financing, from SolarCity.

Under this latest collaboration between Tesla and Panasonic, the Japanese electronics company is anticipated to begin the manufacturing of photovoltaic modules and cells at the New York Gigafactory in 2017. On the other hand, Tesla aims to provide a purchase commitment for solar cells from the Japanese company over the long term. The electric car manufacturer predicts that the boosted relationship between the two parties is an important step to establish “fully-integrated energy products” and advance its mission to boost the transition to green and sustainable energy.

As of 10:39 AM GMT -4 on October 17, the TSLA stock is changing hands at $194.39, down by 1.08 percent or 2.15 points.

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