Japanese technology giant Panasonic began to reap the battery partnership with American electric car maker Tesla. Announcing its balance sheet for the fourth fiscal quarter of 2019, the company reported that it achieved a profit of $ 915 million, an increase of 3 percent compared to the same period last year.
With a wide range of products from digital cameras to smart televisions, headphones to personal care products, Panasonic is also one of the largest battery manufacturers in the world.
The Japanese company, which is currently responsible for the production of batteries in Tesla cars, announced that in the fourth financial quarter of 2019, it reduced production costs and increased 3 percent in operating profit. Reporting 100.4 billion yen ($ 915.22 million) in the last quarter of the year, Panasonic has managed to significantly exceed analyst expectations. Analysts had predicted that the Japanese tech giant’s quarterly earnings would be only 67.36 billion yen.
Tesla’s acceleration of production at the lithium-ion battery and assembly plant in Nevada has also revived Panasonic’s battery business. The Japanese company, which has increased its production volume following the target of making more cars every year to meet the intense demand for Tesla’s vehicles such as Model 3, has begun to bear the fruit of this effort.
On the other hand, Tesla will not be the only automobile company with which Panasonic is a battery partner. The company is also preparing to establish a joint venture company with Japanese manufacturer Toyota to manufacture and develop electric vehicle batteries. The initiative, which will focus on the production of prismatic shaped batteries, aims to serve all brands in the industry.