Budding Tesla-Panasonic Romance is Western New York's Gain

Steph Willems
by Steph Willems

Sparks flew when Tesla teamed up with Panasonic to produce battery packs at the automaker’s Nevada Gigafactory. Of course, it helped that the Japanese battery maker brought $1.6 billion of its own money to the table.

After it tested the waters and liked what it saw, Tesla has now inked an agreement with Panasonic to bring jobs — hopefully long-lasting ones — to Buffalo, New York.

Both companies entered into a non-binding letter of intent yesterday, with the aim of producing solar cells and modules for SolarCity. Tesla has already signed a $2.6 billion deal to acquire the solar energy company, but shareholders have yet to give the deal the green light. The merger, and thus the new agreement, is due for a November 17 vote.

“Under this agreement…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,” the automaker stated in a blog post. “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.”

With shareholder consent, the two companies will push their beds together to make photovoltaic (PV) cells and modules at SolarCity’s South Park Avenue facility. Panasonic would provide the cells, while the merged Tesla-SolarCity entity would buy those components for the finished product. Production is scheduled to start next year.

According to The Buffalo News, the plant — billed as the largest solar panel factory in the Western Hemisphere — should employ 1,460 workers, with another 1,440 jobs created through suppliers and service contracts. While the jobs would be good news for Buffalo’s tax base, its residents have already ponied up a small sum for the plant’s creation. Solar City received $750 million in state tax dollars through the Buffalo Billion economic development initiative.

The two companies will show off a new product on October 28, The Buffalo News reports. A solar panel setup connected to a Powerwall 2.0 battery would give customers a way to wean themselves off the power grid.

Tesla CEO Elon Musk claims the two companies stand on solid financial ground. However, some investors weren’t pleased by news of the merger, saying SolarCity’s debt makes it a risky acquisition.

[Image: David Hamill/ Flickr ( CC BY-NC 2.0)]

Steph Willems
Steph Willems

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  • True_Blue True_Blue on Oct 18, 2016

    If this happens. There's been a rash of "maybes" - Bass Pro comes to mind - that sours my expectations. But, yes, it would be outstanding. The big FedEx expansion next to the Ford stamping plant, the data centers, and this would be a nice cherry on top.

  • Chuckrs Chuckrs on Oct 18, 2016

    City Journal (free online) has some background on the funding - the Buffalo Billion. Let's just say that it stinks to high heaven. US DA Preet Bharara will never run out of federal corruption investigations. The big fish are to be found in Albany and New York, not Buffalo. Buffalo has a history in technology so I don't think they will have a problem attracting talent as long as said talent really likes skiing and hockey. Bell Aircraft developed the X-1, Yeager's plane, as well as in many of the successors but is now only a memory. Textron Bell Helicopter has long since decamped to the warmer climes of Ft. Worth.

  • Slavuta I don't know how they calc this. My newest cars are 2017 and 2019, 40 and 45K. Both needed tires at 30K+, OEM tires are now don't last too long. This is $1000 in average (may be less). Brakes DYI, filters, oil, wipers. I would say, under $1500 under 45K miles. But with the new tires that will last 60K, new brakes, this sum could be less in the next 40K miles.
  • BeauCharles I had a 2010 Sportback GTS for 10 years. Most reliable car I ever own. Never once needed to use that super long warranty - nothing ever went wrong. Regular maintenance and tires was all I did. It's styling was great too. Even after all those years it looked better than many current models. Biggest gripe I had was the interior. Cheap (but durable) materials and no sound insulation to speak of. If Mitsubishi had addressed those items I'm sure it would have sold better.
  • Marty S I learned to drive on a Crosley. Also, I had a brand new 75 Buick Riviera and the doors were huge. Bent the inside edge of the hood when opening it while the passenger door was open. Pretty poor assembly quality.
  • 3-On-The-Tree Alan, I was an Apache pilot and after my second back surgery I was medically boarded off of flying status due to vibrations, climbing on and off aircraft, so I was given the choice of getting out or re-branching so I switched to Military Intel. Yes your right if you can’t perform your out doesn’t matter if your at 17 years. Dad always said your just a number, he was a retired command master chief 25 years.
  • ToolGuy "Note that those vehicles are in direct competition with models Rivian sells"• I predict that we are about to hear why this statement may not be exactly true
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