Investor's Corner
Deeper Tesla, Panasonic ties could lead to a Smart Home future
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
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.
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.
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Panasonic’s Future Home
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.
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.
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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.
Elon Musk
Tesla AI boss reveals how big Optimus is going to get
Tesla’s Optimus chief corrected himself on X, confirming a staggering 10 million robot production target.
![Tesla Optimus Gen 3 [Credit: Tesla]](https://www.teslarati.com/wp-content/uploads/2026/03/tesla-optimus-gen3-diner.jpg)
Tesla’s Optimus program has a new number attached to it, after Ashok Elluswamy, the executive who has run the humanoid robot program since June 2025, posted a three word correction on X Thursday, “Correction, 10 million robots.”
The line clarifies the long term annual capacity Tesla is building toward its planned second Optimus production line at Gigafactory Texas, a figure Musk has cited repeatedly since last year’s shareholder meeting.
The scale is worth noting, because ten million robots a year would mean Tesla building more units annually than most countries sell in new cars. Tesla has framed this as a second line, not the first. The buildout is happening in two phases: a roughly one million unit per year line inside Tesla’s Fremont factory, installed on the floor space vacated when Model S and Model X production ended earlier this year, and a much larger dedicated facility under construction at Giga Texas that broke ground on its first steel structure in May. That Texas facility is the one Elluswamy’s correction refers to, and is expected to reach volume production sometime in 2027.
Correction, 10 million robots https://t.co/0z4nyQNTzp
— Ashok Elluswamy (@aelluswamy) July 30, 2026
Tesla Optimus project fires up as Musk sees production line progress
Elluswamy took over Optimus from Milan Kovac last summer and has spent the months since talking up the program’s trajectory. Elon Musk has also floated the ten million figure at Tesla’s 2025 shareholder meeting.
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Ending Model S and Model X production to make room for the first Optimus line was one of the more consequential manufacturing decisions in the company’s recent history, retiring two flagship vehicles in favor of a robot that has yet to enter mass production. Musk has previously estimated per unit production costs at $20,000 to $25,000 once Tesla reaches a million units a year, though he hasn’t said what that cost looks like at ten times the volume.
SpaceX just picked up another $1.6 billion from the Pentagon, with the U.S. Space Force awarding two task orders worth $1.6 billion to fly 18 Falcon 9 missions from Vandenberg Space Force Base in California through the end of 2027. The launches will carry satellites for the Space Based Sensing and Targeting portfolio, a set of programs meant to help the military detect and track airborne threats and relay that information across forces in near real time.
The award falls under National Security Space Launch Phase 3 Lane 1, the Space Force’s faster, commercial style procurement track for missions that do not require the military’s most demanding certification process. It is also the largest single order publicly disclosed under that program so far, and the first task order issued since the Space Force nearly tripled Lane 1’s contract ceiling from $5.6 billion to $17 billion on July 17.
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
Eric Zarybnisky, the Space Force’s acting portfolio acquisition executive for space access, said the entire process, from identifying the requirement to signing the contract, took about two months, including a month set aside for companies to prepare proposals.
SpaceX is not just launching these satellites. It already holds the contracts to build two of the programs within the same portfolio, $4.16 billion for the Space Based Airborne Moving Target Indicator system and $2.29 billion for the Space Data Network Backbone, which Teslarati covered in May. That means SpaceX is now responsible for both building key pieces of the military’s next generation sensing network and getting them into orbit.
With this latest award, SpaceX’s Pentagon contract total for 2026 alone tops $8 billion, adding to a defense portfolio that already includes the Golden Dome missile defense software group SpaceX joined in April and a string of GPS launches it inherited after ULA’s Vulcan rocket ran into a booster anomaly, which we detailed in March.
Lane 1’s vendor pool technically includes seven companies: SpaceX, ULA, Blue Origin, Rocket Lab, Stoke Space, Impulse Space, and Relativity Space. In practice, SpaceX remains the only provider with the combination of launch cadence, flight proven Falcon 9 hardware, and West Coast infrastructure to support a campaign requiring roughly one Vandenberg launch a month for the next year and a half.
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Some lawmakers have flagged the growing concentration of national security launches with one company as a risk worth watching. For now, the Space Force keeps backing SpaceX, with it being the company that shows up ready to launch.
SpaceX (NASDAQ: SPCX) got an absolutely crazy price target rating from Raymond James after the company experienced a tough first few weeks following its Initial Public Offering (IPO).
Despite the tumultuous start, SpaceX has plenty of believers, and the company’s massively successful Starship launch last Friday, its 13th test flight of the massive rocket, went so smoothly that Raymond James analysts pushed its price target on the company to roughly 7 times its current trading level.
SpaceX Starship just nailed something it’s never done before
The firm officially put a “Strong Buy” rating and an $800 price target on the stock. It currently trades at around $113. Its all-time high is $225.64, reaching this trading level shortly after shares first went public.
Raymond James’ price target is tied to the firm’s confidence after Starship’s 13th test flight. Analysts at the firm said it was an incremental step that reduces engineering risks, citing the widely successful heat shield test that CEO Elon Musk recently detailed, the smooth deployment of Starlink V3 satellites, and a successful in-space engine relight.
SpaceX also managed to see Starship splash down safely in the Indian Ocean, while the Super Heavy Booster fell down to the Gulf of America with no incidents.
It is interesting to see these launches have such a tremendous impact on the stock and what investors think of it. After SpaceX initially delayed the Starship launch last week, shares fell tremendously. Most probably did not realize that the stand-down is a standard practice, especially if everything is not perfect.
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The mission was initially aborted due to an issue with Raptor engines. This was resolved, and Starship launched last Friday after another delay on Thursday, which was caused by weather.
Now that analysts have seen what SpaceX launches are capable of and how impressive the feat is, firms are adjusting their price targets accordingly, making it known that they have high expectations for the space exploration company.
![Tesla Optimus Gen 3 [Credit: Tesla]](https://www.teslarati.com/wp-content/uploads/2026/03/tesla-optimus-gen3-diner-80x80.jpg)
Tesla AI boss reveals how big Optimus is going to get
Autonomous vehicle red tape gets slashed by Trump Administration
