a key tesla supplier cuts growth plans, raising red flags over demand for the model 3 - home battery storage

Panasonic is freezing plans to expand its role as a Tesla electric vehicle battery supplier, raising new questions about Tesla Model 3's demand
The future of the company.
"Panasonic's news is an intuition.
This raises concerns about overall demand and future profitability, "said Dan Ives, stock analyst at Wedbush Securities.
Tesla shares fell 2.
8% to $268 on Thursday. 42.
Japan's Nikkei Asia Review reported on Thursday that Panasonic will temporarily abandon plans to expand Tesla's Nevada battery plant's battery manufacturing capacity by 54% next year.
The previously planned expansion will increase production from 35 gigawatts per year to 54 gigawatts per year.
Panasonic said in a statement that it "built 35 GWh battery production capacity at Tesla's gigabit Plant 1 at the end of the 3 quarter, based on growing demand.
Looking at the demand situation, Panasonic will work with Tesla to study additional investments over 35 GWh.
A Tesla spokesman said Thursday that the company's demand for batteries remains strong.
"Contrary to what [implied]the Nikkei]
Our demand for batteries continues to exceed supply, the report said.
This is still the basic limit for the production of Tesla cars and Powerwall/Powerpack.
Powerballs And powerpack are home and utility battery storage products assembled and sold by Tesla.
Musk has a big plan for Nevada's factory, which he calls a gigabit factory ".
He said in 2017 that Four Corners could be placed inside, and that capacity could exceed 100 gigawatts hours over time.
Each company has set up its own business in the battery factory.
The battery cylinder produced by Panasonic is similar in appearance to AA batteries;
Tesla assembled the cylinder into a battery pack that powered the Type 3 car.
Since Model 3 absorbs most of the cylinders manufactured by Panasonic, it is logical to assume that the reduction in the battery production plan will result in a decrease in the demand for the expected Model 3.
But a Tesla spokesman said demand for cars was not a problem.
Although the company has put forward several different figures on production and sales expectations for this year, it seems to have set production levels of 360,000 to 400,000 cars.
The spokesman said, "We believe that improving existing production equipment can get much more output than previously estimated, rather than spending cash on battery plant expansion.
We see significant gains from upgrading existing lines to increase production, which allows Tesla and Panasonic to purchase new equipment for the same amount of output with less spending.
But there are signs of falling demand everywhere.
As a growth company, Tesla has a market value of $46. 4 billion.
But the company report said Model 3 of delivery decreased the 19% this year the first quarter decreased the 50,900 Model S and X of sales decreased the 56%
Pricing car that matches Gross profit margin.
If demand for Model S and Model X does not pick up, the company will produce less than 50,000 this year, half of the total last year.
At the same time, the prices of the three cars have been lowered, many retail stores and sales centers have been closed, and sales staff have been fired.
Jessica Caldwell, an industry analyst at Edmunds Automotive, said Tesla's "demand must have been cut ".
"I don't think they have a waiting list.
It is not clear whether Tesla has done serious demand modeling for its vehicles, or whether chief executive Elon Musk relies on the planning strategy of "building it, they will come"
The Model 3 has been on sale since July 2017, outselling luxury cars such as BMW, Audi and Mercedes. Benz.
But the car market is falling, and the high prices of luxury cars limit the total demand.
In January, Tesla Motor cut the federal tax credit for electric vehicles. 1 this year —
From $7,500 to $3,750 and will halve to $1,875 again --
It is bound to have an impact, especially at a lower level.
Pricing version of Model 3.
Caldwell said that while the market for electric vehicles is growing rapidly, it is still a small point in sales for the entire car.
"In terms of current market opportunities, there are not many opportunities for electric vehicles," she said . ".
The fact that Tesla ships cars to Europe and China also shows demand problems, she said.
"They always pick from the low --
When they launch their vehicle, hang the fruit, "says Caldwell.
"They sell to employees first and then to others in the United States. S. and Canada.
If they sell half of their cars to Europe and China, it shows that their demand in the US is not that bigS.
Tesla has said it is temporarily avoiding the US market. S.
Provide services to overseas customers.
Caldwell points out another possible issue: "low base of existing buyers", which means Tesla's owners are not that much yet, so there is not much more to trade for new owners.
Customers who buy the masses
Market vehicles such as Honda Civics and Ford F-
150 pickup trucks tend to buy new ones.
Tesla's inevitable starting base is low.
"It's a challenge for demand," she said . ".
Tesla blamed Panasonic last year for the decline in Model S and X sales, not customer demand.
In a quarterly report, the company said sales of S and X were "restricted by the supply of Panasonic batteries ".
The batteries in these cars are different from those in type 3 cars.
After the Times reported a slowdown in demand for S and X in April 2018, a Tesla spokesman said the conclusion was "significantly inaccurate" and pointed out the battery-restricted language.
At that time, the Times said Panasonic.
"Panasonic is not required to increase capacity," the company said.
In short, Panasonic is supplying batteries as planned.