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Tesla finalizes agreement with Panasonic to manufacture solar cells from Buffalo, NY factory

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Tesla-SolarCity plant at Riverbend in South Buffalo. [Source: Derek Gee/Buffalo News]
Tesla-SolarCity plant at Riverbend in South Buffalo. [Source: Derek Gee/Buffalo News]

Tesla will incorporate Panasonic cells into glass solar roof tiles when production begins in summer 2017

Tesla announced today that it has finalized an agreement with Panasonic that would allow both companies to begin manufacturing high-efficiency photovoltaic (PV) cells and modules from its Buffalo, NY factory. The update comes months after Tesla first announced that it had entered into a non-binding letter of intent with Panasonic under which the two companies would collaborate on the manufacturing and production of PV cells and modules. However, the agreement was only valid upon shareholders’ approval of Tesla’s acquisition of SolarCity – a deal that saw an overwhelming majority of voters approving the merger.

Tesla and Panasonic will initially build PV cells and modules for use in traditional solar panels, but will eventually incorporate Panasonic cells into Tesla’s Solar Roof product when production begins mid-2017. The PV cells will be integrated directly into the glass solar roof tiles which Tesla is offering in a variety of designs.

RECOMMENDED READ: How much will the Tesla Solar Roof cost?

As part of Tesla CEO Elon Musk’s vision of the future, largely comprised of sustainable transportation and storage systems for renewable energy, Tesla’s solar products will be integrated with Panasonic cells and operate seamlessly with the company’s home and commercial energy storage products, Powerwall and Powerpack. Tesla indicates that it has plans to ramp up to 1 Gigawatt of PV module production by 2019.

Today’s announcement also reaffirms Tesla’s commitment to creating American-based jobs at Buffalo, NY, home to SolarCity’s solar factory. We had previously reported that SolarCity has begun holding workforce information sessions as the company prepares to hire nearly 1,400 workers for its $900 million solar factory located at Riverbend.

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Expect to see more announcements from Tesla as it continues to fortify its long-standing partnership with Panasonic. Panasonic is an investor and strategic partner at the Gigafactory in Sparks, Nevada where it manufactures cylindrical 18650 and 2170 lithium-ion cells used in Tesla’s fleet of vehicles and grid storage products.

Panasonic has agreed to cover capital costs required at the Buffalo, NY solar factory. In exchange, Tesla will continue on its long-term purchase commitment from Panasonic, namely, an extension into the purchase of Panasonic PV cells.

Read Tesla’s full announcement below:

Tesla and Panasonic have finalized an agreement this week to begin the manufacturing of photovoltaic (PV) cells and modules at the Buffalo, NY factory. These high-efficiency PV cells and modules will be used to produce solar panels in the non-solar roof products. When production of the solar roof begins, Tesla will also incorporate Panasonic’s cells into the many kinds of solar glass tile roofs that Tesla will be manufacturing. All of these solar products will work seamlessly with Tesla’s energy storage products, Powerwall and Powerpack. Production of the first PV modules will begin in summer 2017, and will ramp to 1 Gigawatt of module production by 2019.

As Tesla and Panasonic begin production, Buffalo will continue to expand Tesla’s American manufacturing base and create thousands of new jobs in the coming years. Tesla reaffirms SolarCity’s commitment to create over 1,400 jobs in Buffalo—including more than 500 manufacturing jobs. Panasonic, with its technological and manufacturing expertise in PV production, will also work with Tesla on developing PV next generation technology at SolarCity’s facility in Fremont, CA.

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As part of the agreement, Panasonic will cover required capital costs in Buffalo and Tesla is making a long-term purchase commitment from Panasonic. The collaboration extends the established relationship between Tesla and Panasonic, which includes the production of electric vehicle and grid storage battery cells at the Tesla Gigafactory.

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Tesla China breaks 8-month slump by selling 71,599 vehicles wholesale in June

Tesla China’s June numbers were released by the China Passenger Car Association (CPCA) on Tuesday.

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Credit: Tesla Asia/X

Tesla China was able to sell 71,599 vehicles wholesale in June 2025, reversing eight consecutive months of year-over-year declines. The figure marks a 0.83% increase from the 71,599 vehicles sold wholesale in June 2024 and a 16.1% jump compared to the 61,662 vehicles sold wholesale in May. 

Tesla China’s June numbers were released by the China Passenger Car Association (CPCA) on Tuesday.

Tesla China’s June results in focus

Tesla produces both the Model 3 and Model Y at its Shanghai Gigafactory, which serves as the company’s primary vehicle export hub. Earlier this year, Tesla initiated a changeover for its best-selling vehicle, the Model Y, resulting in a drop in vehicle sales during the first and second quarters.

Tesla’s second-quarter China sales totaled 191,720 units including exports. While these numbers represent a 6.8% year-over-year decline for Tesla China, Q2 did show sequential improvement, rising about 11% from Q1 2025, as noted in a CNEV Post report.

For the first half of the year, Tesla sold 364,474 vehicles wholesale. This represents a 14.6% drop compared to the 426,623 units sold wholesale in the first half of 2024.

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China’s competitive local EV market

Tesla’s position in China is notable, especially as the new Model Y is gaining ground in the country’s BEV segment. That being said, Tesla is also facing competition from impressive local brands such as Xiaomi, whose new YU7 electric SUV is larger and more affordable than the Model Y. 

The momentum of the YU7 is impressive, as the vehicle was able to secure 200,000 firm orders within three minutes and over 240,000 locked-in orders within 18 hours. Xiaomi’s previous model, the SU7 electric sedan, which is aimed at the Tesla Model 3, also remains popular, with June deliveries surpassing 25,000 units for the ninth straight month.

While China’s EV market is getting more competitive, Tesla’s new Model Y is also ramping its production and deliveries. Needless to say, Tesla China’s results for the remaining two quarters of 2025 will be very interesting.

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Tesla reveals it is using AI to make factories more sustainable: here’s how

Tesla is using AI in its Gigafactory Nevada factory to improve HVAC efficiency.

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Credit: Tesla

Tesla has revealed in its Extended Impact Report for 2024 that it is using Artificial Intelligence (AI) to enable its factories to be more sustainable. One example it used was its achievement of managing “the majority of the HVAC infrastructure at Gigafactory Nevada is now AI-controlled” last year.

In a commitment to becoming more efficient and making its production as eco-friendly as possible, Tesla has been working for years to find solutions to reduce energy consumption in its factories.

For example, in 2023, Tesla implemented optimization controls in the plastics and paint shops located at Gigafactory Texas, which increased the efficiency of natural gas consumption. Tesla plans to phase out natural gas use across its factories eventually, but for now, it prioritizes work to reduce emissions from that energy source specifically.

It also uses Hygrometric Control Logic for Air Handling Units at Giafactory Berlin, resulting in 17,000 MWh in energy savings each year. At Gigafactory Nevada, Tesla saves 9.5 GWh of energy through the use of N-Methylpyrrolidone refineries when extracting critical raw material.

Perhaps the most interesting way Tesla is conserving energy is through the use of AI at Gigafactory Nevada, as it describes its use of AI to reduce energy demand:

“In 2023, AI Control for HVAC was expanded from Nevada and Texas to now include our Berlin-Brandenburg and Fremont factories. AI Control policy enables HVAC systems within each factory to work together to process sensor data, model factory dynamics, and apply control actions that safely minimize the energy required to support production. In 2024, this system achieved two milestones: the majority of HVAC infrastructure at Gigafactory Nevada is now AI-controlled, reducing fan and thermal energy demand; and the AI algorithm was extended to manage entire chiller plants, creating a closed-loop control system that optimizes both chilled water consumption and the energy required for its generation, all while maintaining factory conditions.”

Tesla utilizes AI Control “primarily on systems that heat or cool critical factory production spaces and equipment.” AI Control communicates with the preexisting standard control logic of each system, and any issues can be resolved by quickly reverting back to standard control. There were none in 2024.

Tesla says that it is utilizing AI to drive impact at its factories, and it has proven to be a valuable tool in reducing energy consumption at one of its facilities.

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Tesla analysts believe Musk and Trump feud will pass

Tesla CEO Elon Musk and U.S. President Donald Trump’s feud shall pass, several bulls say.

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The White House, Public domain, via Wikimedia Commons
President Donald J. Trump purchases a Tesla on the South Lawn, Tuesday, March 11, 2025. (Official White House Photo by Molly Riley)

Tesla analysts are breaking down the current feud between CEO Elon Musk and U.S. President Donald Trump, as the two continue to disagree on the “Big Beautiful Bill” and its impact on the country’s national debt.

Musk, who headed the Department of Government Efficiency (DOGE) under the Trump Administration, left his post in May. Soon thereafter, he and President Trump entered a very public and verbal disagreement, where things turned sour. They reconciled to an extent, and things seemed to be in the past.

However, the second disagreement between the two started on Monday, as Musk continued to push back on the “Big Beautiful Bill” that the Trump administration is attempting to sign into law. It would, by Musk’s estimation, increase spending and reverse the work DOGE did to trim the deficit.

President Trump has hinted that DOGE could be “the monster” that “eats Elon,” threatening to end the subsidies that SpaceX and Tesla receive. Musk has not been opposed to ending government subsidies for companies, including his own, as long as they are all abolished.

How Tesla could benefit from the ‘Big Beautiful Bill’ that axes EV subsidies

Despite this contentious back-and-forth between the two, analysts are sharing their opinions now, and a few of the more bullish Tesla observers are convinced that this feud will pass, Trump and Musk will resolve their differences as they have before, and things will return to normal.

ARK Invest’s Cathie Wood said this morning that the feud between Musk and Trump is another example of “this too shall pass:”

Additionally, Wedbush’s Dan Ives, in a note to investors this morning, said that the situation “will settle:”

“We believe this situation will settle and at the end of the day Musk needs Trump and Trump needs Musk given the AI Arms Race going on between the US and China. The jabs between Musk and Trump will continue as the Budget rolls through Congress but Tesla investors want Musk to focus on driving Tesla and stop this political angle…which has turned into a life of its own in a roller coaster ride since the November elections.”

Tesla shares are down about 5 percent at 3:10 p.m. on the East Coast.

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