panasonic shares plunge after profit warning, tesla's big maxwell deal - energy storage companies
TOKYO —
Shares of Panasonic fell nearly 6.
Shares of electric vehicle battery makers rose 5% Tuesday after reporting quarterly revenue declines and overall cuts
While electric vehicle partner Tesla is expanding its business in battery technology,
Japanese companies book 9% drops after breaking 19% of operating profits on Monday on October-
China's economy slowed in December, with weak demand for auto parts and factory equipment.
Both figures are well below analysts' estimates.
Later on Monday, electric car maker Tesla said it had agreed to buy American cars. S.
Maxwell Technologies, an energy storage company, for $0. 218 billion
Stock trading may help electric car manufacturers produce more energy and last longer batteries when they need to cut costs and face increasing competition.
On January, executives at Maxwell told investors that the company had developed and obtained a patent for a "dry electrode" technology that could significantly increase battery life for electric vehicles and reduce
In a report, Maxwell said it expected a strategic alliance around the technology "within six months.
The company also produces super capacitors, which release energy faster than the battery and is considered a complement to battery technology.
The super capacitor, combined with the energy of the battery, enables fast response times, works over a wider temperature range, and doubles battery life, according to a blog post on the Maxwell website. Volvo-
Geely Holding Group, the owner, announced an agreement with Maxwell on last May, saying the company's super-capacitor technology could help provide "peak power" for hybrid cars ".
Tesla needs Maxwell's solvent.
"Free battery electrode manufacturing is a viable way to reduce battery costs," said Craig Owen of Roth Capital Partners . ".
"Real competitors are coming, so Tesla needs to grow fast.
"Maxwell sells super capacitor batteries to Lamborghini, a subsidiary of GM and Volkswagen.
Panasonic is Tesla's exclusive battery supplier, and Tesla is Panasonic's largest battery customer for electric vehicles.
The Japanese electronics company also makes super capacitors.
Industry analysts in Japan pointed out Tuesday that Panasonic's outlook is a major source of investor attention. They say the impact of Maxwell's deal on Panasonic is unclear.
"The latest gains reveal how difficult the Panasonic situation is," said Yoshihiko ishiano, an analyst at Tokyo's East China Sea Research Center . ".
At the same time as the acquisition of Maxwell, Panasonic will also lose its exclusive cooperation with Tesla. S.
Electric car manufacturers plan to source batteries locally for a new car factory in Shanghai, "most likely from several companies.
"Panasonic has turned to offering products such as car batteries and cockpit systems to corporate customers, no longer using low-end products
But "it's clear that it's suffering commercially --to-
The same is true in business areas . "