By on February 26, 2014

Toyota Panasonic TF108

In the wake of Tesla shares hitting an all-time high of $259.20 after Morgan Stanley raised its target price to $320/share, battery maker Panasonic is gathering a few partners to go all in on a $1 billion investment in the automaker’s Gigafactory battery production plant.

The Globe and Mail reports that the plant, set to open in 2017 (just in time for production of the Tesla Model E), will help bolster Panasonic’s supply of lithium-ion batteries already found in the Model S and, soon, the Model X. The Gigafactory would also provide packs to Toyota and various automakers interested in the technology.

Though the proposed factory would lower production costs by placing the entire process under one roof, the main purpose according to Tesla CEO Elon Musk is “to support the volume of the third generation car”:

Meanwhile, investors heeded the advice of Morgan Stanley Tuesday, pushing Tesla share prices to a record peak of $259.20 before falling to $248 at close. The firm raised its target price per share from $153 to $320 based on the potential effects the Gigafactory could have on the United States auto industry in the next 14 years, an assessment Stifel analyst James Albertine believes to be a game-changer in the energy storage market:

While we remain negative on Tesla shares above $200 as an automotive OEM (original equipment manufacturer), the energy storage opportunity requires a broader perspective and could very well justify current, if not higher valuation levels.

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9 Comments on “Panasonic, Partners Plan To Invest $1 Billion In Tesla Gigafactory...”

  • avatar

    “The firm raised its target price per share from $153 to $320 based on the potential effects the Gigafactory could have on the United States auto industry in the next 14 years…”

    Yep. Because manufacturing cars is one of the most profitable undertakings known to man. You have to love stock market analysts.

  • avatar

    I wish I were any analyst! Buy TSLA, double “target price”, watch the ensuing frenzy, sell TSLA at significant premium to purchase price, buy a Model S with profits…

  • avatar

    Dr. Emmett Brown:*running out of the room* 1.21 gigawatts! 1.21 gigawatts. Great Scott!
    This is it! This is the answer. It says here that a bolt of lightning is going to strike the clock tower at precisely 10:04 p.m. next Saturday night! If… If we could somehow harness this lightning… channel it into the flux capacitor… it just might work. Next Saturday night, we’re sending you back to the future!

    Marty McFly: *following* What-what the hell is a gigawatt?

    I love that movie! :)

  • avatar

    Kiss that billion goodbye. You won’t get it back when Solyndra motors goes belly up.

    • 0 avatar

      Ahh – there’s always one of you lurking. Let’s see – Tesla got a loan – revived a moribund factory – directly employed 400 people in the middle of a depression – and repaid the loan ahead of time.

      And you moan about Solyndra. Which by the way is not a scandal but the price paid for investing in important cutting edge energy tech that’s vital for the country as expensive wars become too expensive.

      Here’s a better place to focus your inchoate anger:

      boeing paid no taxes and got billions in government grants.

      Ford got 5- 6 billion from the same fund as Tesla and hasn’t paid it back – and as far as I can see, has produces a shitty cvt and called it a day. Now go to work.

      • 0 avatar

        “…as expensive wars become too expensive…”

        What % of GDP was spent on defense in 1960? What % of GDP is spent on defense now?

        And this whole “we went to war over oil” meme is getting tiresome. We occupied Iraq to prevent the proliferation of nuclear weapons and other WMDs in the aftermath of the attacks on 9-11. I’ve not heard much talk lately of Iraq running gas centrifuges.

  • avatar

    Never bet against Mr Stark… err Mr. Musk….

    He is turning out to be one of the greatest sources of inspiration for many Gen X and Y’s….. can’t help but cheer for the man and all of his ventures

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