Tesla and Panasonic end joint solar cell production

Latest decision poses setback despite continued cooperation in EV batteries

20200225N Tesla

Tesla's Gigafactory 2 is a joint venture with Panasonic to produce solar panels and roof tiles in Buffalo, New York. © Reuters

ITSURO FUJINO, NATSUMI KAWASAKI and TAKESHI SHIRAISHI, Nikkei staff writers

OSAKA/PALO ALTO -- Tesla and Panasonic are scrapping their partnership in producing solar cells after years of struggling to ramp up output at the Gigafactory 2 in upstate New York.

The companies intend to continue working together on automotive batteries for Tesla's electric vehicles. But the latest decision poses yet another setback in their strained relationship, which had once been considered a key component to Panasonic's turnaround.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.