Panasonic and Tesla Motors Inc (NASDAQ:TSLA) Extend their Agreement
According to an agreement between Panasonic Corporation (TYO:6752) and Tesla Motors Inc (NASDAQ:TSLA), Panasonic’s supply of battery cells of lithium-ion of automotive-grade to Tesla Motors will increase. The agreement has updated and extended the 2011 contract between the two companies for four more years during which Panasonic will deliver almost 2 billion cells to Tesla Motors.
Tesla Motor’s Model X and Model S will be powered by Panasonic’s battery cells. The agreement between the two companies is based on the association between Tesla and Panasonic that spans over many years; the purpose of this association is to ultimately promote sales of electric vehicles in the market.
In another turn of events, shares of Tesla Motors have been in a downward trend for three consecutive days. This happened twice within this month and last month in September; Tesla Motors also had to face a fall in shares in August that lasted 4 days. Yesterday’s drop was extremely important and despite the fact there is no major news, the shares are still going down and have eliminated the important $160 a share line. This downward movement has made the position of Tesla stocks weaker and because of this there is a possibility of share sales soon. Michael Pruves of Weeden’s believe that situation for Tesla is becoming rough with every passing day.
In today’s market Tesla shares went down by -1.65% ($161.41) whereas shares of General Motors Company (NYSE:GM) went up by 2.55% ($36.98), shares of Ford Motor Company (NYSE:F) also went up by -0.29% ($17.52) and shares of Toyota Motor Corporation (NYSE:TM) went up by 0.98% ($130.22).