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>excess battery production Tesla buys batteries from Panasonic. Why would Tesla have excess supply?
by peteey 7y ago
>excess battery production
Tesla buys batteries from Panasonic. Why would Tesla have excess supply?
- fjsolwmv 7y agoNo idea if this is true, but Tesla might have a contract for X batteries at Y$ but only end up needing Z<X for its car sales. In every industry it's a good idea to find a use for excess materials.
- rory096 7y agoGigafactory is a joint venture between Panasonic and Tesla. But either way, in a world where demand for batteries far outstrips supply, the contractual ability to buy a greater quantity — knowing they can be sold profitably in any form factor — is an asset. Underpurchasing would be squandering that asset.
- mlindner 7y agoTesla does not buy batteries from Panasonic. They joint manufacture a cell of Tesla design. The cell design is Tesla IP, not Panasonic's.