Panasonic Profit Weighed by Tesla Costs, But in Talks For Further Investment

[Vlad Kovalenko + 115]

Panasonic reported a decline in quarterly profit far beyond what analysts estimated, as costs rose ta the battery plant it jointly runs with US electric vehicles maker Tesla. 
As production of the automaker’s mass-market Model 3 accelerated in the July-September quarter, Panasonic had to send more engineers and spend more to increase cell production. The higher costs, as well as slower demand for factory automation equipment in China amid an escalating Sino-U.S. trade war, pushed Panasonic’s July-September operating profit down 15 percent. 
Yet Panasonic said it was in talks to add to its $1.6 billion investment and take capacity at the so-called Gigafactory over the 35 GWh it is set to reach by March-end.

[Brian W + 78]

This is a clear sign that they see the future in Tesla and they are not planning to leave. Especially after Tesla reported a quartal net profit and positive cash flow. Panasonic is not focusing on quarterly results but on overoll progress.