Japan’s Panasonic is contemplating pulling out of photovoltaic cell manufacturing at Tesla’s facility in New York, stated individuals with direct knowledge of the matter, raising ambiguity over the U.S. agency’s struggling photovoltaic business.
The step would come as the Japanese electronics firm scrambles to divest of unprofitable enterprises as its strategic move to parts from consumer electronics struggles to push profit.
Panasonic will sustain its automotive battery joint venture with the U.S. electric car manufacturer in the U.S. state of Nevada, which reported its first quarterly revenue after years of manufacturing troubles and delays.
The people refused to be recognized as the talks on the matter were still ongoing. Panasonic declined to remark.
Tesla’s plan to build photovoltaic products in New York has come under review as the corporate drastically scaled back the U.S. photovoltaic business it bought in 2016 with the $2.6 billion purchase of SolarCity.
Low demand from Tesla left Panasonic sending most cells from the plant to overseas purchasers, as an alternative of selling them to Tesla for its groundbreaking Solar Roof – cells designed to look like regular black roof tiles.
Panasonic has already shrunk its solar enterprise elsewhere as it competes with competition from cheaper Asian competitors, selling its solar panel facility in Malaysia and research subsidiary to China’s GS-Solar for an undisclosed amount in 2019.