3 ms·

Panasonic's issue seems to be: > Panasonic's Tesla EV battery business had operating losses exceeding 20 billion yen [~180m USD] in the financial year that end

Panasonic's issue seems to be: > Panasonic's Tesla EV battery business had operating losses exceeding 20 billion yen [~180m USD] in the financial year that ended in March, up from a year earlier. The losses were exacerbated by delays in the start of production of the Model 3. It's not entirely clear to me from the article whether this loss stems from the operations itself, or from the reduction in demand for the model 3. Either way, it's bad news for Tesla.

lazulicurio 8y ago
> Either way, it's bad news for Tesla As someone in the (US) industry, everyone's hurting right now, not just Tesla. The GM plant closures have had a large ripple effect on suppliers. And beyond that, in general it seems like there's been a lot of belt-tightening over the last year. Whether self-fulfilling prophecy from fears of a recession or something else, I don't know.
- navigatesol 8y ago
  >As someone in the (US) industry, everyone's hurting right now, not just Tesla Yes, that auto market is cyclical. That's why it's nice to be producing tons of cash flow and income, instead of burning billions of dollars.
  - Dumblydorr 8y ago
    Tesla isn't burning billions anymore, have you seen their last two quarters profits? Now, especially if they cut investment into new factories, they will have trouble bringing new products but they could still make 7k cars weekly and press pause on R and D.
    - deleted 8y ago
      [deleted]
  - whttheuuu 8y ago
    What? They aren't burning any money let alone billions lol
- prolepunk 8y ago
  The weird thing about GM closures was that GM seemed to be doing fine, and then they axed whole bunch of factories and discontinued most of the sedans and Chevy Volt.
  - Gpetrium 8y ago
    To me, GM's closure was aimed at 'trimming the fat' to put more emphasis on areas where they are more profitable, a shift to the tech side of cars and in preparation for an economic downturn.
  - dragontamer 8y ago
    Cars are highly cyclical, which means future demand can be predicted very well. Cars are cyclical because they last for 5 to 15 years. When everyone is done buying new cars, there's a lull and car companies need to cut back supply. "Everyone" is hurting because "everyone" is part of the same cycle in the industry. Ford, GM, etc. etc. have all closed plants in anticipation of the lower-demand over the next year or two.
    - deleted 8y ago
      [deleted]
lazyjones 8y ago
Here's an older article that clarifies some of the issues: Panasonic has lowered its forecast for the 2018/19 fiscal year, which ends in March, following a decline in profits over the winter. However, the Energy division, which also includes the battery business with Tesla, recorded its first operating profit in three quarters at 131 million euros. The Japanese company cites the trade dispute between the USA and China as the reason for the lowered forecast, which caused demand for automotive components and factory equipment, among other things, to fall. https://www.electrive.com/2019/02/05/tesla-saves-panasonics-business-margins/ https://www.electrive.com/2019/02/05/tesla-saves-panasonics-...

lazulicurio 8y ago

> Either way, it's bad news for Tesla As someone in the (US) industry, everyone's hurting right now, not just Tesla. The GM plant closures have had a large ripple effect on suppliers. And beyond that, in general it seems like there's been a lot of belt-tightening over the last year. Whether self-fulfilling prophecy from fears of a recession or something else, I don't know.

navigatesol 8y ago
>As someone in the (US) industry, everyone's hurting right now, not just Tesla Yes, that auto market is cyclical. That's why it's nice to be producing tons of cash flow and income, instead of burning billions of dollars.
- Dumblydorr 8y ago
  Tesla isn't burning billions anymore, have you seen their last two quarters profits? Now, especially if they cut investment into new factories, they will have trouble bringing new products but they could still make 7k cars weekly and press pause on R and D.
  - deleted 8y ago
    [deleted]
- whttheuuu 8y ago
  What? They aren't burning any money let alone billions lol
prolepunk 8y ago
The weird thing about GM closures was that GM seemed to be doing fine, and then they axed whole bunch of factories and discontinued most of the sedans and Chevy Volt.
- Gpetrium 8y ago
  To me, GM's closure was aimed at 'trimming the fat' to put more emphasis on areas where they are more profitable, a shift to the tech side of cars and in preparation for an economic downturn.
- dragontamer 8y ago
  Cars are highly cyclical, which means future demand can be predicted very well. Cars are cyclical because they last for 5 to 15 years. When everyone is done buying new cars, there's a lull and car companies need to cut back supply. "Everyone" is hurting because "everyone" is part of the same cycle in the industry. Ford, GM, etc. etc. have all closed plants in anticipation of the lower-demand over the next year or two.
  - deleted 8y ago
    [deleted]

lazyjones 8y ago

Here's an older article that clarifies some of the issues: Panasonic has lowered its forecast for the 2018/19 fiscal year, which ends in March, following a decline in profits over the winter. However, the Energy division, which also includes the battery business with Tesla, recorded its first operating profit in three quarters at 131 million euros. The Japanese company cites the trade dispute between the USA and China as the reason for the lowered forecast, which caused demand for automotive components and factory equipment, among other things, to fall. https://www.electrive.com/2019/02/05/tesla-saves-panasonics-business-margins/ https://www.electrive.com/2019/02/05/tesla-saves-panasonics-...