Energy
Panasonic slumps as Tesla branches out with new battery deal
Japanese battery maker Panasonic’s appears to be feeling the direct effects of its partnership with California-based electric car maker Tesla. Just recently, Panasonic opted to cut its profit outlook for 2019 over China’s slowing economy due to the trade war against the United States. Amidst these headwinds, Panasonic’s partnership with Tesla proved to be a silver lining for the Japanese company, pushing its battery business towards profitability — the first time in three quarters.
During a briefing about its adjusted forecasts, Panasonic Chief Financial Officer Hirokazu Umeda pointed out that there have been improvements with sales and profit on its battery business over the past months. Umeda notes that much of these improvements are due to its partnership with Tesla, especially considering the upgrades that Panasonic rolled out to its battery cell lines in Gigafactory 1. Overall, Tesla’s business gave Panasonic an operating profit of 16.5 billion yen (around $150M).
“Sales and profit at the Tesla business have improved,” Umeda said, later adding that additional lines at Gigafactory 1 would be installed by the end of March. The Panasonic CFO noted that with the upcoming improvements, Gigafactory 1’s total capacity could reach 35 GWh.
While its battery business appears to be thriving under its partnership with Tesla, Panasonic’s shares were walloped on Tuesday nonetheless. The Japanese firm’s 6.5% decline on Tuesday transpired amidst news that Tesla is acquiring ultracapacitor firm Maxwell Technologies in an all-stock deal valued at around $218 million. Considering that the opportunities presented by the Maxwell acquisition are related to Tesla’s battery technology, one could almost assume that Panasonic is practically losing its exclusivity as the electric car maker’s sole battery provider.
That said, industry analysts from Japan have noted that Panasonic’s recent decline in the market is primarily due to the company’s bleak quarterly earnings and annual profit estimate, which featured a 9% cut in its operating profit outlook and a decline of 19% for Q4 2018. This was a point highlighted by Masahiko Ishino, an analyst from the Tokai Tokyo Research Center, who noted in a statement to Reuters that Panasonic’s dive in the market was mostly due to the company’s outlook.
“The latest earnings have revealed how tough the situation is for Panasonic,” he said.
In a way, both Tesla and Panasonic appear to be branching out in their respective battery endeavors. Apart from acquiring Maxwell and its ultracapacitor tech, Tesla is also reportedly looking to partner with local battery suppliers in China for vehicles that will be produced at Gigafactory 3. On the other hand, Panasonic appears to be doing the same thing, recently teaming up with Toyota Motor Corp to collaborate in the development and production of rectangular-shaped prismatic batteries. Panasonic is also hoping to supply prismatic batteries to carmakers such as Honda, using the technology it would be developing with Toyota.
While these updates from Tesla and Panasonic might give the impression that the two companies are starting to diverge from each other, such an idea would be inaccurate. The batteries for Tesla’s electric cars and energy storage devices built in the US, after all, are still exclusively supplied by Panasonic. That means that the Japanese company would still be heavily invested in Tesla, as the electric car maker continues the Model 3 ramp and as it raises the production of its energy products like the Powerwall 2. Considering Tesla’s product roadmap, there is a very good chance that the electric car maker’s partnership with Panasonic would last for a long time to come.
Energy
Tesla Energy gains UK license to sell electricity to homes and businesses
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
Tesla Energy has received a license to supply electricity in the United Kingdom, opening the door for the company to serve homes and businesses in the country.
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
According to Ofgem, the license took effect at 6 p.m. local time on Wednesday and applies to Great Britain.
The approval allows Tesla’s energy business to sell electricity directly to customers in the region, as noted in a Bloomberg News report.
Tesla has already expanded similar services in the United States. In Texas, the company offers electricity plans that allow Tesla owners to charge their vehicles at a lower cost while also feeding excess electricity back into the grid.
Tesla already has a sizable presence in the UK market. According to price comparison website U-switch, there are more than 250,000 Tesla electric vehicles in the country and thousands of Tesla home energy storage systems.
Ofgem also noted that Tesla Motors Ltd., a separate entity incorporated in England and Wales, received an electricity generation license in June 2020.
The new UK license arrives as Tesla continues expanding its global energy business.
Last year, Tesla Energy retained the top position in the global battery energy storage system (BESS) integrator market for the second consecutive year. According to Wood Mackenzie’s latest rankings, Tesla held about 15% of global market share in 2024.
The company also maintained a dominant position in North America, where it captured roughly 39% market share in the region.
At the same time, competition in the energy storage sector is increasing. Chinese companies such as Sungrow have been expanding their presence globally, particularly in Europe.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Energy
Tesla Megapack Megafactory in Texas advances with major property sale
Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.
Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.
In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.
The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.
According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.
Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.
Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.
The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.
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