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Panasonic finds itself in need of some Tesla-style boldness as it enters its next era
Tesla’s oldest battery partner, Panasonic, is finding itself at a crossroads once more. With Chief Executive Kazuhiro Tsuga poised to step down next June, the massive Japanese conglomerate is feeling some pressure to optimize and streamline itself. To accomplish this, Panasonic may need to channel one of its key battery partners, Tesla, and its CEO, Elon Musk, to make the bold decisions needed to thrive in a new era.
When Tsuga took Panasonic’s reins eight years ago, he stated that his first priority would be to return the massive conglomerate into a profitable “normal company.” He did not disappoint. Tsuga stemmed a record loss by pulling the company out of the plasma television market and repositioning the firm as an automotive-and-housing conglomerate. The veteran Japanese executive also did something unexpected: he initiated a $5 billion battery manufacturing tie-up with Tesla in 2014.
Tsuga’s strategy of partnering with Tesla, then an unproven electric car maker, and a CEO known for a Tony Stark-like persona, was considered a courageous move on the Japanese conglomerate’s part. The partnership of the experienced Japanese veteran and assertive US startup bore fruit, with Gigafactory Nevada becoming the world’s largest battery facility. Its operations with Tesla are even closing in on its first annual profit. But the journey to this point was not easy.
As noted in a Financial Times report, Panasonic and Tesla clashed over the years, and these tensions reportedly manifested themselves when the Japanese firm decided to not invest in Gigafactory Shanghai. This resulted in Tesla partnering with other suppliers like LG Chem and Contemporary Amperex Technology Co., Limited (CATL). Tesla has also announced plans to start producing its own 4680 tabless cells for its vehicles and energy storage products.
As the outgoing Panasonic CEO prepares to step down in June, his promise of running a “normal company” is leaving a bitter aftertaste to the company he will leave behind. Over the years, rivals such as Sony and Hitachi have gone on massive divestment initiatives to streamline their businesses. And while Panasonic has followed a similar path, executives continue to struggle to define what kind of company it is. Newly-appointed chief executive Yuki Kusumi, who is poised to succeed Tsuga, referenced this when he stated that Panasonic could achieve growth if it could optimize businesses that excelled in its portfolio, which currently stretches across a whopping 520 subsidiaries.
The outgoing Panasonic CEO, as a final departing measure, is hoping to change the company into a holding company structure, which is similar to a move that rival Sony will make around April. According to Panasonic, the shift, which is expected to be completed in 2022, could help accelerate decision-making across the conglomerate by running its units independently. Yet even this strategy poses challenges for Panasonic since unlike Sony, which has found its “core” in the games, films, animation, and the music segment, Panasonic’s “core” still seems unclear. This difference is evident when one looks at the two Japanese firms’ performance in the market. Sony has increased 78% since February while Panasonic has dropped 30%.
But things may be looking up for Panasonic. When he announced Panasonic’s shift to a holding company, Tsuga resurrected car batteries as a “core” by branding it as an “energy business.” Thanks in part to this, as well as the ongoing expansion of profitable projects like Gigafactory Nevada, Panasonic’s next CEO, Yuki Kusumi, would be taking control of a company that is in a much better financial position as the one handed over to his predecessor. As highlighted by the Financial Times, if Kusumi would like to usher in a revival or a breakthrough of sorts for Panasonic in the coming years, he would have to channel less of his predecessor’s “normal company” strategy and more of the boldness characteristic of partners like Tesla.
Markets like the battery industry are only just heating up, after all. While Tesla has stated that it intends to keep and grow its partnership with suppliers like Panasonic despite its own battery production plans, competitors like LG Chem and CATL are not sitting out the next few years. LG has even posted a bold challenge of sorts to the Japanese conglomerate recently, with the South Korean firm stating that it has every intention to become Tesla’s main battery supplier in the near future, effectively taking Panasonic’s place. With some Elon Musk-style boldness, however, perhaps Panasonic could still keep its lead in the battery sector, and perhaps even increase its reach in the growing EV segment.
Tesla analyst Andrew Percoco of Morgan Stanley teased the company’s dominance in its self-driving initiative, stating that its lead over competitors is “not even close.”
Percoco recently overtook coverage of Tesla stock from Adam Jonas, who had covered the company at Morgan Stanley for years. Percoco is handling Tesla now that Jonas is covering embodied AI stocks and no longer automotive.
His first move after grabbing coverage was to adjust the price target from $410 to $425, as well as the rating from ‘Overweight’ to ‘Equal Weight.’
Percoco’s new note regarding Tesla highlights the company’s extensive lead in self-driving and autonomy projects, something that it has plenty of competition in, but has established its prowess over the past few years.
He writes:
“It’s not even close. Tesla continues to lead in autonomous driving, even as Nvidia rolls out new technology aimed at helping other automakers build driverless systems.”
Percoco’s main point regarding Tesla’s advantage is the company’s ability to collect large amounts of training data through its massive fleet, as millions of cars are driving throughout the world and gathering millions of miles of vehicle behavior on the road.
This is the main point that Percoco makes regarding Tesla’s lead in the entire autonomy sector: data is King, and Tesla has the most of it.
One big story that has hit the news over the past week is that of NVIDIA and its own self-driving suite, called Alpamayo. NVIDIA launched this open-source AI program last week, but it differs from Tesla’s in a significant fashion, especially from a hardware perspective, as it plans to use a combination of LiDAR, Radar, and Vision (Cameras) to operate.
Percoco said that NVIDIA’s announcement does not impact Morgan Stanley’s long-term opinions on Tesla and its strength or prowess in self-driving.
NVIDIA CEO Jensen Huang commends Tesla’s Elon Musk for early belief
And, for what it’s worth, NVIDIA CEO Jensen Huang even said some remarkable things about Tesla following the launch of Alpamayo:
“I think the Tesla stack is the most advanced autonomous vehicle stack in the world. I’m fairly certain they were already using end-to-end AI. Whether their AI did reasoning or not is somewhat secondary to that first part.”
Percoco reiterated both the $425 price target and the ‘Equal Weight’ rating on Tesla shares.
Elon Musk
Donald Trump turns to Elon Musk and Starlink amid Iran internet blackout
Donald Trump has stated that he plans to speak with SpaceX CEO Elon Musk about restoring internet access in Iran.
Donald Trump has stated that he plans to speak with SpaceX CEO Elon Musk about restoring internet access in Iran, as authorities in the country implement an internet blackout amid nationwide anti-government protests.
Trump points to Starlink
Speaking to reporters in Washington, Trump said Musk would be well-suited to help restore connectivity in Iran, citing his experience operating large-scale satellite networks, as noted in a Reuters report. “He’s very good at that kind of thing, he’s got a very good company,” Trump said.
Iran has experienced a near-total internet shutdown for several days, severely limiting the flow of information as protests escalated into broader demonstrations against the country’s rulers.
Starlink has previously been used in Iran during periods of unrest, allowing some users to access the global internet despite government blocks. Neither Musk nor SpaceX immediately commented on Trump’s remarks, but Musk has publicly supported efforts to provide Starlink access to Iranians during earlier periods of unrest.
Renewed Trump–Musk ties
Trump’s comments come amid a thaw in his previously strained relationship with Musk. The two had a public falling-out last year over domestic policy disagreements but have since appeared together publicly, including at Trump’s Mar-a-Lago resort. The renewed ties now intersect with foreign policy, as Starlink has become a strategic tool in regions facing censorship or conflict.
The satellite service has also played a prominent role elsewhere, most notably in Ukraine, highlighting both its potential impact and the political sensitivities surrounding its use. In Iran, Starlink support previously followed coordination between Musk and U.S. officials during protests in 2022.
The current internet blackout in Iran has drawn international attention, with rights groups estimating hundreds of deaths and thousands of arrests since demonstrations intensified late last year. Iranian authorities have not released official casualty figures, and outside verification remains limited due to restricted communications.
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Tesla China’s domestic sales fell 4.8% in 2025, but it’s not doom and gloom
Despite the full-year dip, Tesla finished the year with record domestic sales in December.
Tesla posted 625,698 retail vehicle sales in China in 2025, marking a 4.8% year-on-year decline as the EV maker navigated an increasingly competitive EV market and a major production transition for its best-selling vehicle.
Despite the full-year dip, Tesla finished the year with record domestic sales in December.
Retail sales slip amid Model Y transition
Tesla’s 2025 retail sales in China were down from 657,102 units in 2024, when the company ranked third in the country’s new energy vehicle (NEV) market with a 6.0% share. In 2025, Tesla’s share slipped to 4.9%, placing it fifth overall, as noted in a CNEV Post report.
Part of the decline seemed tied to operational disruptions early in the year. Tesla implemented a changeover to the new Tesla Model Y in the first quarter of 2025, which required temporary production pauses at Giga Shanghai. That downtime reduced vehicle availability early during the year, weighing on the company’s retail volumes in China and in areas supplied by Giga Shanghai’s exports.
China remained one of Tesla’s largest markets, accounting for 38.24% of its global deliveries of 1.64 million vehicles in 2025. However, the company also saw exports from Giga Shanghai fall to 226,034 units, down nearly 13% year-on-year. It remains to be seen how much of this could be attributed to the Model Y changeover and how much could be attributed to other factors.
Strong December 2025 finish
While the full-year picture showed some contraction, Tesla closed 2025 on a high note. According to data from the China Passenger Car Association (CPCA), Tesla China delivered a record 93,843 vehicles domestically in China in December, its highest monthly total ever. That figure was up 13.2% from a year earlier and 28.3% higher than November.
The surge was driven in part by Tesla prioritizing domestic deliveries late in the year, allowing buyers to lock in favorable purchase tax policies. In December alone, Tesla captured 7.0% of China’s NEV market and a notable 12.0% share of the country’s battery-electric segment.
On a wholesale basis, Tesla China sold 851,732 vehicles in 2025, down 7.1% year-on-year. From this number, 97,171 were from December 2025 alone. Tesla Model 3 wholesale figures reached 312,738 units, a year-over-year decrease of 13.12%. The Tesla Model Y’s wholesale figures for 2025 were 538,994 units, down 3.18% year-over-year.
Tesla analyst teases self-driving dominance in new note: ‘It’s not even close’
Donald Trump turns to Elon Musk and Starlink amid Iran internet blackout
