Outgoing CEO says Panasonic should minimize Tesla reliance as battery tie-up evolves: Report

Corp’s outgoing Chief Govt Kazuhiro Tsuga mentioned the corporate might want to cut back its heavy reliance on Tesla Inc by making batteries extra suitable with electric vehicles from different world carmakers, the Monetary Occasions reported on Sunday.

“In some unspecified time in the future, we have to graduate from our one-legged strategy of relying solely on Tesla,” Tsuga, who will step down after 9 years as CEO from April 1, advised the newspaper in an interview.

“We’re coming into a distinct section and we have to control supplying producers aside from Tesla.”

The Japanese conglomerate introduced in November that Tsuga would step down in April after 9 years on the helm and that Yuki Kusumi, the pinnacle of its automotive enterprise, would take over.

Beneath Tsuga’s management, Panasonic has shifted its focus away from low-margin shopper electronics to batteries, manufacturing unit machines and elements. The corporate mentioned final month it expects its battery enterprise supplying Tesla to be worthwhile this fiscal yr.

Panasonic has partnered with Tesla in a $5 billion battery “gigafactory” close to Reno, Nevada.