Panasonic Gains Around $3.88 Billion After Selling All of Its Shares in Tesla

The prominent Japanese electronics firm Panasonic gained billions of dollars as it sold all of its stakes in Tesla. This move was primarily done to fund new strategic investments going forward.

Nonetheless, the company will continue to produce and supply Tesla with the electric-vehicle batteries necessary for the American automaker. “Our relationship with Tesla as a business partner will not change going forward,” said a business executive from Panasonic.

Panasonic was able to unload all of its Tesla stakes by end-March, which accounts for approximately $3.88 billion in “proceeds from sale and redemption of investments” as stated in the firm’s consolidated cash flows statements.

The partnership between the two began in 2009 after Panasonic signed its first supply contract with Tesla. When the automaker went public in 2010, Panasonic bought 1.4 million shares at $21.15 apiece. This gave Tesla a significant amount of financial backing while Panasonic was given a platform to expand its growing auto battery venture.

At its annual securities report in March 2020, the Japanese firm estimated the market value of its shares at $730 million. Tesla’s stock price rose substantially during the spring of 2020, going as high as $900 per share at one point.

Nonetheless, Panasonic’s move allows it to meet its rising demand for capital. It has already expressed intentions to purchase U.S. supply chain software developer Blue Yonder at $7.1 billion. Meanwhile, it will still continue to invest in its auto battery business.

Source: Nikkei Asia