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Elon Musk said Panasonic hasn't been making enough battery cells for Tesla's cars

Apr 15, 2019, 20:09 IST

Chicago Mayor Rahm Emanuel listens to engineer and tech entrepreneur Elon Musk of The Boring Company talks about constructing a high speed transit tunnel at Block 37 during a news conference on June 14, 2018 in Chicago, Illinois.Joshua Lott/Getty Images

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  • Tesla CEO Elon Musk tweeted on Saturday that the rate of battery-cell production from Panasonic has held back output for the electric-car maker's Model 3 sedan.
  • "Pana cell lines at Giga are only at ~24GWh/yr & have been a constraint on Model 3 output since July," Musk said. "Tesla won't spend money on more capacity until existing lines get closer to 35GWh theoretical."
  • Panasonic did not immediately respond to Business Insider's request for comment.
  • Visit BusinessInsider.com for more stories.

Tesla CEO Elon Musk tweeted on Saturday that the rate of battery-cell production from Panasonic has held back output for the electric-car maker's Model 3 sedan.

"Pana cell lines at Giga are only at ~24GWh/yr & have been a constraint on Model 3 output since July," Musk said. "Tesla won't spend money on more capacity until existing lines get closer to 35GWh theoretical."

Read more: Tesla isn't the next Theranos - here are 10 reasons why

Musk's tweets came in response to a tweet from Bloomberg reporter Tom Randall, who cited reports that Panasonic had reached a battery-production capacity of 35 GWh per year in March and was halting new investment in Tesla's Gigafactory, where it produces battery cells for Tesla, as it monitored demand for Tesla's vehicles. (Tesla said the two companies are still investing in the Gigafactory but are also focusing on improving the efficiency of existing equipment.)

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Musk said Panasonic's stated, annual production capacity of 35 GWh was "theoretical," and that its true production capacity was about two-thirds of that rate.

"There is 35 GWh/yr 'theoretical capacity', but actual max output is ~2/3. It was physically impossible to make more Model 3's in Q1 due to cell constraints," Musk said.

Panasonic did not immediately respond to Business Insider's request for comment.

Have you worked for Tesla? Do you have a story to share? Contact this reporter at mmatousek@businessinsider.com.

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