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Deeper Tesla, Panasonic ties could lead to a Smart Home future

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A growing partnership between Tesla and Panasonic on solar cell production and storage batteries may one day eliminate residential reliance on the power grid and provide the capacity to recharge electric cars each night. However, to secure this collaboration on solar cell and module production, Tesla’s proposed SolarCity acquisition must first be approved by shareholders on November 17, 2016.  

In the meantime, Tesla and Panasonic have entered into a non-binding letter of intent under which they will begin collaborating on the manufacturing and production of photovoltaic (PV) cells and modules in Buffalo, New York. The Buffalo facility will become the largest solar panel factory in North America, with expectations to employ 1,460 workers and produce up to 10,000 panels per day.

A blog post on Tesla’s website acknowledged that the continued partnership with Panasonic is an important step in creating fully-integrated energy products for businesses, homeowners, and utilities and furthers Tesla’s mission toward a sustainable energy future.

The Relationship between Tesla and Panasonic

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The October 16, 2016 announcement confirmed that this newest collaboration extends the established relationship between Tesla and Panasonic, which includes the production of electric vehicle and grid storage battery cells at Tesla’s Gigafactory outside Sparks, Nevada. The $5 billion Gigafactory will produce batteries for the Model 3 electric car and energy storage products for home and utilities.

“We expect that the collaboration talks will lead to growth of the Tesla and Panasonic relationship,” said Shuuji Okayama, vice president of Panasonic’s Eco Solutions unit.

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Battery cell production will begin by late 2016 and is expected to reach full capacity by 2018, producing more lithium ion batteries annually than were produced worldwide in 2013. In cooperation with Panasonic and other strategic partners, the Gigafactory will produce batteries that have the capacity to drive down the per kilowatt hour (kWh) cost of a battery pack by more than 30 percent. That anticipated cost drop is crucial, as current battery costs are untenable.

Panasonic plans to begin PV cell and module production at the Buffalo facility in 2017, and Tesla intends to provide a long-term purchase commitment for those cells from Panasonic. The Tesla/ Panasonic collaboration could mean that energy from solar panels will be pumped into home storage batteries. No longer would residential home solar systems follow the traditional model of selling back to utilities.

Panasonic’s Future Home

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Panasonic demonstrates a ‘PanoHome’ smart home in Malaysia [Source: Panasonic]

The proposed Tesla/ Panasonic collaboration would shift Panasonic’s historic focus from consumer electronics products and onto housing, automotive information systems, and vehicle batteries, which “would be a win” for Panasonic, according to Bloomberg. Panasonic’s transition to the home electric market began in 2009 with its Tokyo Future Home, which features the latest environmental technologies and a few prototypes. The house is designed to aid natural ventilation and cut down on air conditioning. The walls of the house are lined with a thin and efficient insulator that cuts down on heating and cooling costs. LED lights, which use much less power than incandescent bulbs and last longer than current fluorescent models, are sensor-controlled. Extra generated electricity is stored in a prototype accumulator battery of lithium ion cells for later use. The lights, power, heating, and other apps are controlled in a high-tech in-house network with living room TV at the center.  

The aim of Panasonic’s energy-saving house is to be carbon neutral in energy usage.

Tesla’s Smart House Could Utilize Panasonic’s Technology

Tesla is currently developing advanced systems that adapt to the needs of the environment with the goal is to bring top quality affordable systems that provide energy efficiency, quality of life, and home security.

Already, smart home system are able to cut electric energy spending by 50%, or in some cases go off-grid using Tesla batteries combined with solar. Lights, air conditioning, and all other appliances are automatically managed, turning on and off, depending on the time of day, temperature, motion sensors, door and window detectors, and electricity rates. Fingerprint scanner and pin lock, video surveillance, night vision camera, motion sensors, SMS alarms, fire and flood sensors are accessed through a phone.

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In 2014, Panasonic opened a smart city near Tokyo that is designed to drastically cut CO2 emissions by 70%, reaching to 1990 levels. It will attempt to reduce water usage by 30 percent and achieve 30 percent renewable energy usage. Called the Fujisawa Sustainable Smart Town (SST), the subdivision southwest of Tokyo focuses on solar power and other environmentally friendly technologies.

Together, Tesla and Panasonic may be able to ground ambitious plans for solar-powered systems that charge smart homes and electric cars and make decentralized renewable energy systems that power homes and car a practical reality. “We are excited to expand our partnership with Panasonic as we move towards a combined Tesla and SolarCity,” JB Straubel, Tesla’s chief technical officer and co-founder, said in a statement. “By working together on solar, we will be able to accelerate production of high-efficiency, extremely reliable solar cells and modules at the best cost.”

The Role of the Projected SolarCity Acquisition

The Tesla/ Panasonic collaboration moving forward is contingent on Tesla’s acquisition of SolarCity, but shareholders must approve the move. Tesla’s bid to acquire SolarCity has been fraught with corporate governance issues because the boards of both companies are deeply intertwined.

Tesla co-founder Elon Musk’s effort to unite Tesla and SolarCity has been under close scrutiny, given six of the seven directors on Tesla’s board have SolarCity ties and SolarCity’s CEO, Lyndon Rive, is Musk’s first cousin.

SolarCity, among the top installers of residential rooftop solar panels in the U.S., acquired solar manufacturer Silevo in 2014. The transaction gave SolarCity the factory in Buffalo where Panasonic will begin photovoltaic cell and module production. If the SolarCity acquisition is successful, Tesla will use the cells and modules in a solar energy system that will work seamlessly with Powerwall and Powerpack, Tesla’s energy storage products. With the aid of installation, sales, and financing capabilities from SolarCity, Tesla will bring an integrated sustainable energy solution to residential, commercial, and grid-scale customers.

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Carolyn Fortuna is a writer and researcher with a Ph.D. in education from the University of Rhode Island. She brings a social justice perspective to environmental issues. Please follow me on Twitter and Facebook and Google+

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Investor's Corner

Cantor Fitzgerald maintains Tesla (TSLA) ‘Overweight’ rating amid Q2 2025 deliveries

Cantor Fitzgerald is holding firm on its bullish stance for the electric vehicle maker.

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Credit: Tesla China

Cantor Fitzgerald is holding firm on its bullish stance for Tesla (NASDAQ: TSLA), reiterating its “Overweight” rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report. 

Tesla delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that Tesla is a long-term growth story in the EV sector.

Tesla’s Q2 results

Among the 384,122 vehicles that Tesla delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.

In the energy division, Tesla deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, Tesla continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from Investing.com.

Tesla’s stock is still volatile

Tesla’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump. 

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Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buy” rating on Tesla shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that Tesla remains strong in several markets despite its year-over-year decline in deliveries.

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Tesla analyst issues stern warning to investors: forget Trump-Musk feud

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Credit: Tesla

A Tesla analyst today said that investors should not lose sight of what is truly important in the grand scheme of being a shareholder, and that any near-term drama between CEO Elon Musk and U.S. President Donald Trump should not outshine the progress made by the company.

Gene Munster of Deepwater Management said that Tesla’s progress in autonomy is a much larger influence and a significantly bigger part of the company’s story than any disagreement between political policies.

Munster appeared on CNBC‘s “Closing Bell” yesterday to reiterate this point:

“One thing that is critical for Tesla investors to remember is that what’s going on with the business, with autonomy, the progress that they’re making, albeit early, is much bigger than any feud that is going to happen week-to-week between the President and Elon. So, I understand the reaction, but ultimately, I think that cooler heads will prevail. If they don’t, autonomy is still coming, one way or the other.”

This is a point that other analysts like Dan Ives of Wedbush and Cathie Wood of ARK Invest also made yesterday.

On two occasions over the past month, Musk and President Trump have gotten involved in a very public disagreement over the “Big Beautiful Bill,” which officially passed through the Senate yesterday and is making its way to the House of Representatives.

Tesla analysts believe Musk and Trump feud will pass

Musk is upset with the spending in the bill, while President Trump continues to reiterate that the Tesla CEO is only frustrated with the removal of an “EV mandate,” which does not exist federally, nor is it something Musk has expressed any frustration with.

In fact, Musk has pushed back against keeping federal subsidies for EVs, as long as gas and oil subsidies are also removed.

Nevertheless, Ives and Wood both said yesterday that they believe the political hardship between Musk and President Trump will pass because both realize the world is a better place with them on the same team.

Munster’s perspective is that, even though Musk’s feud with President Trump could apply near-term pressure to the stock, the company’s progress in autonomy is an indication that, in the long term, Tesla is set up to succeed.

Tesla launched its Robotaxi platform in Austin on June 22 and is expanding access to more members of the public. Austin residents are now reporting that they have been invited to join the program.

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Tesla surges following better-than-expected delivery report

Tesla saw some positive momentum during trading hours as it reported its deliveries for Q2.

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(Credit: Tesla)

Tesla (NASDAQ: TSLA) surged over four percent on Wednesday morning after the company reported better-than-expected deliveries. It was nearly right on consensus estimations, as Wall Street predicted the company would deliver 385,000 cars in Q2.

Tesla reported that it delivered 384,122 vehicles in Q2. Many, including those inside the Tesla community, were anticipating deliveries in the 340,000 to 360,000 range, while Wall Street seemed to get it just right.

Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage

Despite Tesla meeting consensus estimations, there were real concerns about what the company would report for Q2.

There were reportedly brief pauses in production at Gigafactory Texas during the quarter and the ramp of the new Model Y configuration across the globe were expected to provide headwinds for the EV maker during the quarter.

At noon on the East Coast, Tesla shares were up about 4.5 percent.

It is expected that Tesla will likely equal the number of deliveries it completed in both of the past two years.

It has hovered at the 1.8 million mark since 2023, and it seems it is right on pace to match that once again. Early last year, Tesla said that annual growth would be “notably lower” than expected due to its development of a new vehicle platform, which will enable more affordable models to be offered to the public.

These cars are expected to be unveiled at some point this year, as Tesla said they were “on track” to be produced in the first half of the year. Tesla has yet to unveil these vehicle designs to the public.

Dan Ives of Wedbush said in a note to investors this morning that the company’s rebound in China in June reflects good things to come, especially given the Model Y and its ramp across the world.

He also said that Musk’s commitment to the company and return from politics played a major role in the company’s performance in Q2:

“If Musk continues to lead and remain in the driver’s seat, we believe Tesla is on a path to an accelerated growth path over the coming years with deliveries expected to ramp in the back-half of 2025 following the Model Y refresh cycle.”

Ives maintained his $500 price target and the ‘Outperform’ rating he held on the stock:

“Tesla’s future is in many ways the brightest it’s ever been in our view given autonomous, FSD, robotics, and many other technology innovations now on the horizon with 90% of the valuation being driven by autonomous and robotics over the coming years but Musk needs to focus on driving Tesla and not putting his political views first. We maintain our OUTPERFORM and $500 PT.”

Moving forward, investors will look to see some gradual growth over the next few quarters. At worst, Tesla should look to match 2023 and 2024 full-year delivery figures, which could be beaten if the automaker can offer those affordable models by the end of the year.

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