Tesla Tells EV Battery Supplier Panasonic to ‘Hurry Up’ in Bid to Increase U.S. Production

Panasonic stock (PCRFF) flickered higher today on reports that it is being pressured by EV maker Tesla (TSLA) to ramp up battery production in the U.S. as a result of Trump tariffs.

According to a report in the Financial Times, the Japanese electronics company said that its main customer – understood to be Tesla – wanted it to accelerate production at its still inactive Kansas plant which has been in construction since 2022.

Get Moving in Kansas

This is believed to be because of concerns over the cost of importing Chinese-made batteries as a result of higher tariffs.

However, it also comes on reports today that Tesla plans to restart shipping components from China for the production of its Cybercab and Semi trucks.

Tesla is believed to use U.S. made batteries for models sold in the U.S. but it does not disclose the origin of batteries for each model variant. It has used Chinese sourced batteries for a low cost version of its Model 3 vehicle but this has since been discontinued.

“We’ve been told by our customer to get Kansas site moving quickly, we’re hurrying to do so,” said Panasonic chief executive Yuki Kusumi.

The site is understood to be close to production and will be its second battery plant in the U.S.

EV Troubles

Tesla has had a troubled last few months with slumping sales as a result of a slowdown in electric vehicle demand, the need for a refresh of its models and the fallout as a result of the close relationship between chief executive Elon Musk and President Trump.

The general drop off in EV demand, presumably down to high prices in a time of economic uncertainty, has put the brakes on other companies investing in factories. Honda (HMC) this week said it was freezing plans to build up its supply chain in Canada, whilst Nissan (NSANY) has scrapped plans for a plant in Japan.

Despite these challenges Panasonic said it expects “robust demand” for its batteries from its main customer.

Is PCRFF a Good Stock to Buy Now?

On TipRanks, PCRFF has a Strong Buy consensus based on 5 Buy and 1 Hold rating. Its highest price target is $16.91. PCRFF stock’s consensus price target is $15.50 implying an 35.67% upside.

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