Does this article spell trouble for Tesla Motors battery supply?

[tdelta1000]

In an article on Engadget states that losses are a foot for Panasonic. Panasonic-Q3-2012

Panasonic's released its 2012 quarterly report (its financial year runs from summer to summer) and concedes it's been as bad for them as it was for Sony and Sharp. It's blaming the Japanese Earthquake for damaging its supply chain, a strong yen for keeping prices high, plus having to write-down the costs for its acquisition of Sanyo. The company's promising to restructure (in the face of stern competition from Samsung and LG) to become a "green innovation" business as well as to streamline its operating costs. It's predicting a quarterly loss of $9.2 billion as it takes the hit for this turmoil, and it doesn't look like things will improve with an anticipated further loss of another $2 billion at the end of the (financial) year.

 

[JRP3]

I doubt it. I'm sure Tesla already has a contract for the cells they need, and Panasonic needs to move product.

 

[AnOutsider]

Plus isn't that more related to tvs and other consumer electronics? How could this hurt Tesla?
Sent from my HTC Arrive using Board Express

 

[Larry Chanin]

Isn't the fact that Tesla is using a commodity battery with identical form factor to other laptop batteries a strong reason not to worry about supply problems? It's true it has a relationship with Panasonic, but these batteries are produced in the billions and I'm sure Tesla has contingency plans to go to alternate suppliers on such a critical item.

Larry

 

[NigelM]

Shipments already started a while back....Panasonic-shipped-the-batteries-last-week

 

[dsm363]

Isn't the fact that Tesla is using a commodity battery with identical form factor to other laptop batteries a strong reason not to worry about supply problems?

Exactly. They can easily find a different supplier of the same format cells if something happened to Panasonic.

 

[3lectronica]

Tesla will start producing their own cells in a few years

 

[ckessel]

Tesla will start producing their own cells in a few years

That seems insanely unlikely. Why would Tesla enter a battery market that's already saturated with gigantic companies?

 

[Doug_G]

Tesla will start producing their own cells in a few years

Seems very unlikely. Based on what?

 

[NigelM]

Vertical integration makes no sense for auto makers. Now I can see other car makers looking at Tesla in a year or two and thinking about horizontal integration....but that's a whole different thread.

 

[PeterW]

Vertical integration makes no sense for auto makers. Now I can see other car makers looking at Tesla in a year or two and thinking about horizontal integration....but that's a whole different thread.

Isn't owning their own stores (distribution network) a example of verticle integration?

 

[GSP]

I read NigelM's comment to be mean vertical integration of cell design and manufacture, not vertical integration in general.

Tesla, and SpaceX, seem inclined to make parts in house, but their stated strategy is to buy cells.

GSP

 

[Norbert]

I wouldn't expect Tesla to develop their own batteries in the next few years, but wouldn't exclude that as a possibility for maybe in 10 years or so. Isn't Nissan already making their own batteries? Let's say someone with a great idea for Supercapacitors's approaches Tesla. I could imagine that Tesla might finance the research, but when it comes to production, they might license it to Panasonic or so. Just as an example. But currently they surely are too busy, besides requiring all means of investment for additional variations of the Model S platform, and eventually a high-volume manufacturing line for Bluestar.

 

[GSP]

Tesla did develop their own breakthtough battery for the Roadster, and also for the Model S. This is their greatest achievement, and still sets them apart from the competition. Who else has a 200+ mile EV?

It is the CELLS that are purchased.

GSP

 

[NigelM]

Isn't owning their own stores (distribution network) a example of verticle integration?

Generally, I was referring to complex components but you have a good point. The question is what will Tesla do when volume starts to ramp up. Can they really maintain selling via their own stores? Would be an interesting break from the existing model for every other auto maker.

 

[kgb]

In the future, having a battery will not be enough to differentiate Tesla from the competition (because they too will have one), what will make Tesla better is having a better battery. If TM wants to keep ahead of the curve and keep its IP out of the hands of competitors, it would be wise for them to develop and produce their own battery chemistry. I think the probability of TM making it's own batteries is about as likely as a computer company designing and making it's own silicone chips - oh wait, Apple is doing that.

 

[ckessel]

Tesla did develop their own breakthtough battery for the Roadster, and also for the Model S. This is their greatest achievement, and still sets them apart from the competition. Who else has a 200+ mile EV?

It is the CELLS that are purchased.

There seems to be a lot of finely split hairs laying about, but if we're splitting them...

Tesla didn't develop a battery. Panasonic makes the batteries. Tesla developed a way of packaging and using them.

 

[Lloyd]

This should go to another thread...... None of this has to do with trouble for tesla's battery supply.

 

[JRP3]

There seems to be a lot of finely split hairs laying about, but if we're splitting them...

Tesla didn't develop a battery. Panasonic makes the batteries. Tesla developed a way of packaging and using them.

Actually if split hairs are what you are seeking then Panasonic is not making batteries, since batteries are a collection of cells, they make cells. Tesla makes batteries, and more specifically, battery packs.

 

[ckessel]

Actually if split hairs are what you are seeking then Panasonic is not making batteries, since batteries are a collection of cells, they make cells. Tesla makes batteries, and more specifically, battery packs.

Ok, barring a technical definition of "battery", this is going in circles.