The Japanese battery manufacturer has been forced in recent hours to reduce its production of 1865 cells. A format that Panasonic manufactures for the Tesla Model S and Model X.
According to the latest information published by Reuters and Panasonic, the battery-producing company would have been forced to slow down the production of its components “to normalize inventories. ” This 1865 format is the one that the brand supplies to Tesla and with which it powers its highest-end vehicles: the Model S and Model X. But why has this event taken place?
Panasonic provides these formats manufactured in Japan to the two vehicles already mentioned, while those manufactured in the United States of type 2170 are those intended for the Model 3 and Model Y. According to what has been published by the company, the slowdown in the Production only affects 1865.
Stagnation in Tesla sales
For both Panasonic and Tesla, it represents a big step back in terms of the shipments required until now. The main reason for this would be none other than the drop in sales that Tesla is suffering from its top-of-the-range models. Compared to other previous years, in the past third quarter, Elon Musk‘s company registered 13,688 units, 31% less than in the same period of previous years. Throughout the three quarters of 2023 (nine months), the company has sold a total of 45,905 units of both models, 7% less than the previous year.
This, in addition to the impact on the sale of these cells, will mean a significant decrease in Panasonic’s income figures. This decrease was already predicted by the company itself, where they foresee a 15% decrease in its income to 769 million dollars. Hirokazu Umeda himself, chief financial officer of the Panasonic Group, stated: “We were working to optimize inventories while closing lines, rather than completely closing operations.”
Many already accuse this movement of supporting the theory that the electric car market is slowing down internationally. However, Tesla’s sales, as well as those of other manufacturers, continue to be at a record level.
The cars affected by this decrease in battery production are the two vehicles that the company sells the least, either due to price (mainly) or because they are the firm’s oldest. This is something that Umeda himself has supported in an intervention: “As these are luxury cars that exceed the most affordable prices, demand has fallen.”
Against all odds, during their results presentation, it was clear that the Nevada plant, where Panasonic manufactures the 2170 cells for the Model 3 and Model Y, is going from strength to strength, as they have declared that this is their “key market.” So much so, that the company is already slightly expanding its manufacturing capacity in this factory, in addition to building a new plant in Kansas, with an annual production of 30 GWh.