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Panasonic plans to suspend battery production at Tesla, Nevada

Panasonic plans to suspend battery production at Tesla, Nevada
Panasonic plans to suspend battery production at Tesla, Nevada
  • The electronics industry player has decided to pull off over 3500 employees from its partner, Tesla’s Nevada factory in the lieu of coronavirus outbreak.
     
  • Tesla calls off production at California factory.

In wake of the current situation where numerous companies are striving hard to get their revenue scale and finances back on track amid coronavirus outbreak, EV giant, Tesla is facing hardships accounting to halt in production and shutting down of factories at various locations.

Reportedly, Panasonic, Tesla’s partner in battery production took a drastic step to temporarily pull off its nearly 3500 employees from the company’s Nevada factory, given the current situation. Tesla’s Nevada facility was formed to furnish the growing battery requirements across the globe.

According to an official source, the Japanese electronics company would halt the operations temporarily, early next week before shutting it down for 14 days. However, the operations in the facility would continue while the operations at San Francisco Bay Area vehicle facility would be suspended here on March 24th.

It has been reported that the Nevada plant employees, who have been affected with this sudden withdrawal would receive full pay and additional benefits for the entire course of their work. Upon closure, the entire facility would undergo intensive cleaning. 

For the records, Gigafactory 1, that houses battery production for Tesla, stands as one of the pivotal ingredients in the company’s goal to escalate the globe’s transition to sustainable energy by increasing global battery capacity and minimizing the cost of electric vehicles. Apparently, to realize this goal, Panasonic and Tesla came to definite collaborative terms which would benefit both the parties.

Speaking on lines of the matter, it has been apprehended that Panasonic’s withdrawal from battery production could bring a break in Tesla’s growth which could leave the firm facing a bottleneck in the global supply chain.

Source credit: https://www.foxbusiness.com/technology/panasonic-to-suspend-battery-production-at-tesla-joint-venture-in-nevada-due-to-coronavirus