Panasonic Hasn't Committed to Tesla's (TSLA) Gigafactory; Cites Increased Risk

March 27, 2014 6:59 AM EDT
Tesla Motors (Nasdaq: TSLA) shares are on watch today following comments from one Panasonic executive with respect to Tesla's planned Gigafactory battery factory.

Speaking at a briefing in Tokyo, Panasonic President Kazuhiro Tsuga said the company has not yet committed to the Tesla Gigafactory project. The executive said doing so would raise investment risks for the company.

Notably, Panasonic and Tesla did recent ink a deal for the tech giant to supply lithium-ion batteries to the automaker for four years, through 2017. Total supply would amount to around 2 billion cells. Given that construction of the Gigafactory will take several years, the two sides might not even consider entering a new deal until the current one expires. But, that's simply our speculation.

Shares of Tesla are positive in early trading Thursday.

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