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Most read in 2019

Tesla and Panasonic freeze spending on $4.5bn Gigafactory

Japanese company also suspends planned investment in Shanghai plant

Problems with production of the Tesla Model 3, shown here at the Auto China 2018 motor show in Beijing, have hurt the profitability of Panasonic's EV battery business.   © Reuters

OSAKA -- Tesla and Panasonic are freezing plans to expand the capacity of their Gigafactory 1, the world's largest EV battery plant, as concerns mount on Wall Street about sales at Elon Musk's car company dipping below estimates.

The partners had planned to raise capacity 50% by next year, but with sales of electric vehicles performing below plans, the two companies concluded that a major investment at this stage poses too much of a risk, Nikkei has learned.

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