10/14/2019

Tesla Backs Off Solar Panel Deal With Panasonic

Tesla Inc. has backed away from an agreement to buy all of the output from a solar-panel factory it operates with Panasonic Corp. , the Japanese company said Thursday, another sign of the uncertain outlook for Tesla’s SolarCity subsidiary.

Panasonic said it began making solar cells and modules at the factory in Buffalo, N.Y., in August 2017, under a deal that called for Tesla to buy the entire output for its home solar-panel business. But Panasonic said the deal was revised early this year, and since then it has been selling some of the production to other panel makers. Tesla is still buying some modules and cells from the plant as well.

Tesla said it was never obligated to buy the full output of the Buffalo plant, which it calls Gigafactory 2, and it continues to have a strong relationship with Panasonic.

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