6752.T - Panasonic Corporation

Tokyo - Tokyo Delayed Price. Currency in JPY
+9.30 (+0.95%)
At close: 3:15PM JST
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Previous Close974.10
Bid981.80 x 0
Ask983.50 x 0
Day's Range966.20 - 983.40
52 Week Range691.70 - 1,264.00
Avg. Volume10,974,692
Market Cap2.294T
Beta (5Y Monthly)1.31
PE Ratio (TTM)10.17
Earnings DateN/A
Forward Dividend & Yield30.00 (3.05%)
Ex-Dividend DateMar. 30, 2020
1y Target EstN/A
  • Inside Microsoft’s Mission to Go Carbon Negative

    Inside Microsoft’s Mission to Go Carbon Negative

    (Bloomberg) -- Over the past four years, Lucas Joppa, Microsoft Corp.’s 37-year-old chief environmental officer, has dislocated and broken one shoulder, separated the other one, broken his right wrist, and also broken his left thumb. In early May he was pretty sure his right thumb was broken, but his hand surgeon said it was a torn ligament. It’s not that he’s clumsy or reckless—he calculates that, given the amount of time he spends on a bike or skis, his “error rate” is about 0.08%—it’s just that he has a tendency not to look before he jumps.It’s this tolerance for risk—and falling—that makes him well-suited for the unprecedented task that lies ahead. In January, Microsoft pledged to be carbon negative (removing more carbon from the atmosphere than it emits) by 2030 and to spend $1 billion on a climate investment fund, much of it aimed at bolstering carbon-removal tech, a nascent field with lots of big ideas but only a handful of companies that are trying it. It was a statement of intent more than a concrete plan. Right now none of this is possible. Joppa and his colleagues are all too aware they can’t wait to act until everything is certain. The fund plans to announce its first investment later this year.“I jump a lot, and sometimes I fall. It’s going to happen. You have to be willing to accept the risk,” Joppa says. The trick, he adds, is skipping the jumps that could kill him if they go wrong. “I’m bringing that approach to everything.”To avert climate disaster, the United Nations Intergovernmental Panel on Climate Change (IPCC) projects overall global warming must be kept below 1.5C. It’s already at 1.16C. Even the previously unimaginable scenario we’re now living through—worldwide lockdowns to stop the Covid-19 pandemic—isn’t lowering the concentration of carbon dioxide in the atmosphere. Global warming hasn’t slowed, and Joppa and a lot of others say it probably won’t without the rapid adoption of carbon- sucking technology that barely exists.On a Thursday morning in April, Joppa logs on to his computer to address a videoconference of 16 people who will help determine how and whether Microsoft can meet one of the most ambitious carbon-reduction goals set by any company.“We’ve got a lot to do, not a lot of time to do it,” he tells the group.On the call are co-workers from his sustainability group, finance and business development officials who will consider investment opportunities, and experts in running Microsoft’s energy-guzzling global network of data centers. They’re joined by executives and climate scientists with Carbon Direct, a consulting company that will help Microsoft develop a 10-year plan for getting to carbon negative.Elizabeth Willmott, Microsoft’s carbon expert, lays out the company’s requirements to offset its emissions: It wants to buy access to a menu of carbon-removal techniques that include planting kelp forests and machines that draw carbon from the air and store it underground. It’s looking for options that are lasting and verifiable. Oh, and Joppa wants to do this on the cheap, paying companies $20 a ton, a fraction of what many of the options currently cost. It’s not because Microsoft doesn’t have the money for pricier options. Rather, one of its key goals is to force the innovation that enables prices to drop to a level others—without Microsoft’s $137.6 billion cash pile—can afford.“I often refer to our climate innovation fund as the self-awareness fund. We could just pay for this, but if you just use money to solve your problems, that represents an extreme lack of self-awareness to everybody else’s ability to do this,” Joppa tells the others on the call.Microsoft’s approach has won praise from climate scientists for its ambition. But the company also counts some of the worst emitters—oil and gas giants such as Chevron Corp. and Exxon Mobil Corp.—among its customers, selling them software and gear they use to increase oil and gas extractions. A May 19 Greenpeace report called out Microsoft and Amazon.com Inc. for “connections to some of the world’s dirtiest oil companies for the explicit purpose of getting more oil and gas out of the ground and onto the market faster and cheaper.”Microsoft is attempting to counter this incongruity with unproven removal ideas, says Nives Dolsak, a professor of sustainability science at the University of Washington. “Their strategy is, ‘We are banking on uncertain technology that will reduce carbon from the air, and if that works out, that allows us to put certain future additional carbon into the air,’ ” she says.Joppa has heard this criticism before. It’s the biggest complaint Microsoft gets on its climate strategy. Oil and gas companies need to be part of the climate and energy solution, he says. It doesn’t make sense to cut ties.As the company leaps headlong into its plan, among the many risks it must consider are the early and unproven technology and its high prices, Joppa says, as well as the rapid pace of climate change and the small window to arrest it. “We have got to go out and make some bets on technologies that don’t exist, on technologies that are too expensive, and on markets that aren’t mature enough,” he says. “They will never be cheap enough, they will never be scaled high enough, and they will never be mature enough unless a Microsoft comes in right now and starts pushing.”Joppa grew up in rural Wisconsin and met his wife, Jamie, in second grade. School bored him until he took a college course called Extinction of Species and then threw himself into studying ecology. After a Peace Corps stint in Malawi and a doctorate he earned in three years, he began work at Microsoft’s research arm, much to the horror of some colleagues. One professor told him, “Lucas, you could have been somebody!”During almost 11 years at Microsoft, Joppa has worked to apply computing power to the Earth’s challenges. He came up with AI for Earth in 2016, a program that grants software to companies working on environmental projects. When the company’s sustainability work became a part of Microsoft’s legal department and Joppa moved with it, his nature-themed tattoos peeking out of a T-shirt stood out among a sea of khaki and button-downs. But when Microsoft decided to name its first chief environmental officer in 2018, Joppa’s scientific background and ability to work with employees from various disciplines made him the obvious choice, says Microsoft President Brad Smith.Since 2012 the company has taxed its own business units for the carbon they emit and put the proceeds into buying carbon credits and running sustainability programs, making it one of the earlier companies to take such a step. Last spring it doubled its internal carbon tax and said it would lobby for national carbon-pricing policies.But customers kept asking Microsoft to do more, and employees were also pushing. In September rival Amazon pledged to be carbon neutral by 2040, and Microsoft felt pressure to step up its own commitment, Smith says. At a meeting in November, Joppa used dire projections from the IPCC as a way to create urgency for Microsoft Chief Executive Officer Satya Nadella and his executive team. The world can emit only 420 more gigatons of CO2 to have a 66% chance of avoiding catastrophic warming, Joppa explained, and at the current rate that’s only a decade away.He returned with instructions to come up with a bold proposal. Along with the finance department, the team worked frenetically over the holidays on the math behind going carbon negative. “It was one thing to have the goal. It was another thing to know whether we could achieve it,” Smith says. Chief Financial Officer Amy Hood committed $1 billion for an idea she’d had: the climate investment fund.Microsoft opted for an unprecedented pledge to clean up all direct and electrical emissions since its 1975 founding by 2050. Its promise to become carbon negative by 2030 includes not only direct emissions from its buildings, data centers, and fleet of campus vehicles, but also something called Scope 3 emissions. These are more indirect, harder to calculate, and far larger. It means taking responsibility for the energy that gamers use when they play Xbox video games, for example. Microsoft doesn’t count oil and gas customers’ use of its software for drilling and exploration in Scope 3.The staff who handle Microsoft’s purchases from suppliers are working on standards for those companies to measure what they emit and planning to add incentives to spur them to do better. Microsoft also plans to work with customers on how they can be greener, which includes helping oil and gas customers with clean energy programs, Joppa says.In the past couple of years, more than 40 tech companies have set targets for limiting emissions, but Microsoft’s plans to be carbon negative by 2030 and wipe out historical emissions are the most aggressive. There are only a handful of businesses that have said they’ll be carbon negative within 10 years, including furniture maker Ikea and tax software provider Intuit Inc. Panasonic Corp. says it will be carbon negative by 2050. Payments startup Stripe Inc. has begun spending $1 million a year funding negative-emissions projects.Microsoft’s investment fund is also unusual, but its goals are similar to those of a fund led by co-founder Bill Gates, who remains an adviser to the company and has met with Joppa and other Microsoft executives to share ideas. Gates is chairman of Breakthrough Energy Ventures, a $1 billion fund with investors such as Amazon founder Jeff Bezos, Virgin Group boss Richard Branson, and Michael Bloomberg, founder and majority owner of Bloomberg LP, which owns Bloomberg Green. There are ongoing conversations between Microsoft and the fund about possible partnerships on investments, says Jonah Goldman, managing director at Gates Ventures, a private investment office for Gates. Both entities share an understanding that carbon removal is a different type of investment, and it’s important to have companies like Microsoft backing technology that isn’t an obvious short-term moneymaker.After an event in January to announce their big plans, Joppa and his team celebrated with a carbon-themed playlist featuring Billy Joel’s We Didn’t Start the Fire and Heat Wave by Martha Reeves and the Vandellas, then got to work figuring out how to make the promises a reality.Joppa has been reading a book on the Apollo mission to put a man on the moon, and he told his wife how jealous it made him. “They had this pure thing that brought business and science and research and engineering all together, and you could just focus on it obsessively,” he says. Jamie answered: “What are you talking about? That’s what you have to do.”On the banks of Howe Sound in British Columbia, a fan the size of a delivery truck slurps carbon out of the atmosphere. It’s part of a factory run by a company called Carbon Engineering, and it’s considered one of the most promising in the field of “direct air capture,” the segment of the carbon-capture industry that sounds the most like science fiction. Gates was an early investor in the company. Basically fans, or “injectors,” connect the air with chemicals that bond with the carbon and remove it. Right now it’s highly inefficient and expensive, with prices anywhere from $250 to $1,000 a ton. Microsoft is banking on the price going down and volume going up.Another direct-air-capture startup, Climeworks AG, has its massive fans set up in Zurich, where the captured CO2 is used to grow plants in a greenhouse. Climeworks operates three plants, but they’re only removing hundreds of tons in a year. The industry is young. In fact, the three leading companies together can’t pull 1 million tons of carbon out of the air a year, while data centers of the kind Microsoft and Amazon operate are estimated to produce more than 300 times that.“Direct air capture is like the Saturn V rocket for the moonshot,” Smith says. “If someone can perfect that, it’s going to just change the equation.” Another carbon-removal technique is bioenergy with carbon capture and storage, or BECCS, which is basically growing plants to absorb carbon and then burning that biomass for power and sequestering the resulting emissions underground. The U.K.’s biggest power plant, in North Yorkshire, has a pilot project using the technology. It’s the first working example of BECCS, and it captures less than 1 ton of carbon dioxide a day.When it comes to machines that successfully remove carbon from the atmosphere today, that’s about it.By Microsoft’s account of its emissions, it needs to buy credits to remove about 2 million tons of CO2 next year—and 6 million by 2030, even though new emissions will be cut by more than half by then. There are other large companies interested in buying credits to offset their carbon sins, too. But there will not be enough carbon-removal tech credits for everyone to offset their emissions. In the near term, Microsoft plans to buy more natural carbon credits that go toward things such as planting trees before switching to tech. In July, Microsoft will begin to solicit bids for its carbon-removal business. Its interest, along with that of Stripe, Shopify Inc., and others, should help fuel investment in new projects, says Deepika Nagabhushan, program director for decarbonized fossil energy at the Clean Air Task Force, which is tracking some 26 potential carbon-capture projects. But it won’t make a difference overnight. “Even if Microsoft announces today that they are going to buy [a certain] number of credits from a direct-air-capture project, it’s going to take a couple of years for a project to even develop.”On Joppa’s conference call, the team from Carbon Direct reminds Microsoft that the low price will make their short-term goals harder. Julio Friedmann, Carbon Direct’s chief scientist, notes most of the available projects in BECCS and direct air capture cost many times Microsoft’s $20-a-ton budget. And other companies need to offer investment funds like Microsoft’s. “You can do a lot with a billion, but you cannot create a gigaton-scale industry with a billion dollars, no matter how smart and savvy the investments are,” Friedmann, who’s also a researcher at the Center on Global Energy Policy at Columbia University, says in an interview.The price is also lower than many experts have modeled for the economic damage each ton of carbon is likely to cause.But Joppa wants to use Microsoft’s purchasing power and its investments to push the price down to a level other buyers can afford. If carbon-capture tech is something only the Microsofts of the world can afford, he worries that the world will fail to contain warming. “Markets work because we make them work,” he says. They work because people put in positive incentives and help juice supply and demand. “You don’t just wish it to be so, and it happens.”Microsoft expects to make mistakes both in investments and carbon-removal choices. Willmott, the carbon expert of the group, says the company wants to be transparent about its successes and failures so others can learn from them.The coronavirus-induced shutdown has made Joppa more certain that radical action is needed quickly. CO2 emissions are down—about 8% of the estimated total for the year will never be emitted, according to the International Energy Agency. Although that’s not enough to make a dent in overall warming, the slowdown has led to cleaner air and clearer skies, and confinement has made the outdoors a welcome respite.“I hope there’s something lasting about it,” he says. “We’ve given people now an experience with a healthier planet, and I hope that’s going to be hard to take away.”There’s another risk in this whole project, of course—that time runs out. Is this plan achievable in the time we have? “It better be,” Joppa says. “I’m existentially worried about the cost of failure.” —With Emily Chasan, Leslie Kaufman, and Akshat Rathi For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Panasonic sees strong demand from Tesla, in talks to expand Nevada battery plant

    Panasonic sees strong demand from Tesla, in talks to expand Nevada battery plant

    Panasonic Corp's <6752.T> finance chief said the company is seeing strong demand for battery cells from U.S. partner Tesla <TSLA.O> and they are in talks to expand their joint plant in Nevada, which is now profitable. The positive outlook comes after production troubles and delays at Tesla strained the company's partnership with Panasonic over the past few years. Panasonic recently lost its status as Tesla's exclusive battery supplier, but has been able to turn around the U.S. joint battery business as demand for Tesla's electric cars soar.

  • GoPro (GPRO) Q1 Earnings Meet Estimates, Withdraws 2020 View

    GoPro (GPRO) Q1 Earnings Meet Estimates, Withdraws 2020 View

    Despite COVID-19 pandemic, factors like effective channel inventory management, direct-to-consumer operating model and accretive subscriber base drive GoPro's (GPRO) first-quarter 2020 results.

  • Dolby (DLB) Misses Q2 Earnings Estimates, Withdraws View

    Dolby (DLB) Misses Q2 Earnings Estimates, Withdraws View

    Despite the COVID-19 pandemic, Dolby's (DLB) second-quarter fiscal 2020 results benefit from higher Licensing revenues as well as increased adoption of Dolby Vision and Dolby Atmos technology.

  • Bloomberg

    Panasonic Cuts Sales Outlook by $2.3 Billion Citing Virus Impact

    (Bloomberg) -- Panasonic Corp. trimmed its annual revenue outlook by 250 billion yen ($2.3 billion) after the coronavirus outbreak depressed sales of appliances, electronics and automotive parts.Sales will total 7.45 trillion yen in the year ended March 31, 3.2% short of the company’s earlier forecast, Panasonic said in a statement on Monday. The electronics manufacturer kept its operating income outlook unchanged at 300 billion yen and said its net income will exceed own estimate by 10 billion yen because of a more favorable tax situation.Key InsightsThe household appliance business took a hit from shelter-at-home orders in Europe and Asia and shortages of parts made in China, undercutting sales of air conditioners and washing machines.Sales of projectors and professional audio-visual equipment suffered from a slump in demand in China and event cancellations in Europe and the U.S.Automotive business revenue was dented by car-factory stoppages around the world.Panasonic said all 85 of its production and distribution subsidiaries in China and Northeast Asia are now operational.The company’s cash and equivalents totaled 1 trillion yen. It has also secured a 700 billion yen commitment line from multiple financial institutions.Chief Executive Officer Kazuhiro Tsuga will address the impact of the pandemic on the company’s mid-term plan at a separate briefing.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Hedge Funds Will Be Collateral Damage in Japan

    (Bloomberg Opinion) -- So long, activists. No one’s giving you any cash back, at least not anytime soon.Companies and investors alike are stashing money as Covid-19 throws an uncertain future across the global economy. Liquidity is front of mind. Automakers and retailers in the U.S. have drawn down billions of dollars on their credit lines to deal with impending shortages. But Japan Inc. has an opportunity — to show hedge funds that have criticized serial cash hoarding and ineffective use of balance sheets that it’s had a point.Piles of idle funds made Japan’s companies a target for global activists, including Paul Singer’s Elliott Management Corp. and Dan Loeb’s Third Point LLC. Tokyo’s stock market has become their highest priority outside the U.S. At the end of last year, activists held 3.4 trillion yen ($31.1 billion) of Japanese stock, doubled from the start of a state-led push for corporate governance reform in 2015.Now, cash on the books looks like a strategic asset rather than a drag. When this crisis ends, there will be great need for capital. Prime Minister Shinzo Abe is incentivizing companies to retool supply chains away from China, the nerve center of world manufacturing. The likes of electronics giant Panasonic Corp. and auto-parts maker Aisin Seiki Co. say they’re looking at options.Setting up new factories and logistics operations doesn’t happen without significant investment. Meanwhile, Japan’s perennial labor shortages, worsened by the pandemic, will mean more expenditure toward machines and automation. Inorganic growth via mergers and acquisitions will be on the back burner until losses are covered. Capital may also be redirected toward virus-related relief, such as producing ventilators.  So far, a big portion of Japan Inc.’s cash has been put toward capital expenditure and research and development, with much smaller though increasing amounts for dividends and buybacks. Total payout ratios relative to operating cash flows are near 20%, compared to 60% in the U.S. Around half of non-financial companies have more liquidity than interest-bearing debt, versus closer to one-fifth in America or Europe. Only activist pressure has slowly shifted companies that far.Hoarding is rooted in previous crises. Japanese companies, which typically rely less on external financing, have a chronic desire for cushions to survive cycles in an economy that’s always verging on a dip in growth. After the global financial crisis and the 2011 earthquake and tsunami, they resumed building balances to far higher levels than in other developed countries.So activists zeroed in. Cash used for growth and returns as a portion of shareholder equity was around 20.5% as of last year, below the post-financial crisis average. Different companies hold their piles for varying reasons: small ones as a precaution; blue chips tend to want to invest more. Either seems like a win in the era of the coronavirus.Sure, there’s a valid case for shaking up corporate governance and returning cash to shareholders. Since the government’s stewardship code emboldened investors, Japan’s business culture has seen the trappings of change, with more independent directors having a stronger role. Companies with higher dividends have been proven to outperform. It’s helped shake off the cozy relationships between big banks and management.But even before the virus, resistance was building and a new law hindered foreign investors and activism. Covid-19 may further take the shine off the reform era. A recent study showed that hedge-fund activism often turns out to be short term, eventually reducing operating cash flow and investment spending. That’s the last thing post-pandemic business needs.This isn’t to say companies won’t use the virus to bury unpleasant news; there’s always room for bad behavior and opportunism. However, there is a need to redo the math on what makes sense and reassess capital efficiency against safety cushions.Activists may not be able to rely on pre-Covid-19 justifications, according to Keith Gottfried and Sean Donahue of Morgan, Lewis & Bockius LLP. There are just far too many uncertainties from the damage to supply chains, operations and the labor force. Rising environment, social and governance-based considerations will hold back institutional investors from banding together behind proxy fights: The coronavirus is, after all, a material social risk as applied to health, safety and human capital.In this environment, some hedge funds may try even harder to justify the need for change, as Gottfried and Donahue point out. But beware of corporate raiders in the guise of white knights. For companies and their shareholders, cash piles will prove to be much safer.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Tesla Plans No-Pay Furloughs, Salary Cuts While Plants Idled

    Tesla Plans No-Pay Furloughs, Salary Cuts While Plants Idled

    (Bloomberg) -- Tesla Inc. will furlough non-critical employees without pay and temporarily cut executive salaries as much as 30% to conserve cash while the coronavirus pandemic forces the shutdown of much of its operations.In the U.S., those ranked vice president or above will see the steepest salary reductions, followed by a 20% drop for directors and a 10% cut for others, according to an internal memo seen by Bloomberg News. Workers outside the U.S. will see similar reductions. Those who can’t work from home and aren’t assigned critical tasks will stay employees and keep their health-care benefits.The moves add Tesla to the growing number of companies slashing labor costs to weather the pandemic. The outbreak hit just as Chief Executive Officer Elon Musk was ramping up the production of the new Model Y crossover, accelerating output at a plant near Shanghai and clearing the way for construction of a new facility outside Berlin.“This is a shared sacrifice across the company that will allow us to progress during these challenging times,” Tesla said in the memo. A representative for the company declined to comment.Tesla shares rose 1% as of 9:45 a.m. Wednesday in New York trading.Reopening PlanTesla agreed to idle U.S. production last month days after authorities ordered the San Francisco Bay area to shelter in place. The electric-vehicle maker expects to resume normal production at its U.S. facilities on May 4, according to the memo, which is the day after the stay-at-home measure is scheduled to end.Even after re-opening its facilities, Tesla will probably need about two weeks to ramp up production again, Dan Levy, a Credit Suisse analyst, wrote in a note late Tuesday. The roughly 30,000 cars that the company had in inventory at the end of the first quarter will be sufficient to meet weakened demand, he said.The company has more than 56,000 employees, according to a recent company-wide email. Its sole U.S. vehicle-assembly plant is in Fremont, California.Wage adjustments and equity grants will be put on hold, according to the memo. The pay cuts are expected to last until the end of the second quarter, and those furloughed are likely to be asked to return on May 4.Nevada, ShanghaiAt its Nevada gigafactory, Tesla reduced on-site staff by 75%, according to the county where the plant is located. The facility produces battery packs and electric motors with partner Panasonic Corp.Tesla’s Shanghai plant, meanwhile, recovered from a virus-related shutdown faster than many in the industry with the help of local authorities. After resuming operations in February, the factory surpassed the capacity it reached before the shutdown, making 3,000 cars a week, the company said last month.Tesla also is planning to expand its lineup in China by introducing a locally built Model 3 sedan with a longer driving range from as early as this week, people familiar with the matter have said.While Tesla is down significantly from a peak close of $917.42 in mid February, the shares are still up 30% for the year.(Updates with shares trading in the fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Tesla to slash on-site staff at Nevada factory by 75% due to virus - county manager

    Tesla to slash on-site staff at Nevada factory by 75% due to virus - county manager

    BEIJING/TOKYO (Reuters) - U.S. electric carmaker Tesla Inc <TSLA.O> plans to slash on-site staff at its Nevada battery plant by around 75% due to the coronavirus pandemic, the local county manager said on Thursday. The move comes after its Japanese battery partner Panasonic Corp <6752.T> said it would scale down operations at the Nevada factory this week before closing it for 14 days. The factory produces electric motors and battery packs for Tesla's popular Model 3 sedans.

  • Reuters

    Panasonic to suspend battery production at Tesla joint venture in Nevada due to coronavirus

    Panasonic Corp <6752.T> said on Saturday it will temporarily suspend production at its battery joint venture with U.S. electric carmaker Tesla Inc <TSLA.O> in Nevada because of the coronavirus outbreak. The Japanese electronics company, which supplies battery cells for Tesla's electric vehicles, will scale down operations at so-called Gigafactory 1 early next week before closing it for 14 days, Panasonic said in an emailed statement. A Panasonic spokeswoman declined to comment on how the suspension would affect Tesla, which produces battery packs using Panasonic cells at the Nevada plant.

  • Tesla partner Panasonic is shutting down its operations at Nevada gigafactory

    Tesla partner Panasonic is shutting down its operations at Nevada gigafactory

    Panasonic is pulling its 3,500 employees from the massive Nevada factory it operates with partner Tesla over concerns about the spread of COVID-19. The company said Friday it will ramp down operations early next week and then close for 14 days. The move only affects Panasonic employees.

  • Panasonic to end solar partnership with Tesla
    Reuters Videos

    Panasonic to end solar partnership with Tesla

    Tesla losing a big partner. Panasonic said Wednesday it's withdrawing from its deal with Tesla to produce solar cells at a plant in Buffalo, New York. The Japanese electronics company said it'll stop production in May and exit the factory by September. Panasonic employs about 380 of the more than 1500 workers at the plant. It said Tesla hopes to hire many of those workers for its operations in Buffalo. The Wall Street Journal reports Tesla told New York officials it'll keep producing solar panels there. The move is another sign of Tesla's fraying relationship with its Japanese partner. Panasonic status as the electric vehicle maker's exclusive automotive battery supplier is ending, and Tesla is set to diversify its battery supplies with other Asian companies. Panasonic said it'll keep producing batteries with Tesla at its joint venture plant in Nevada. Panasonic's exit from the Buffalo factory also increases uncertainty over Tesla's solar business. It had initially planned to sell the cells it makes there to Tesla for the so-called Solar Roof that resembles regular roof tiles. But it ships most of those cells to overseas customers because demand from Tesla has been low. Tesla has been scaling back its solar business since it bought it three years ago. Tesla shares lost ground at the open Wednesday despite the bounce in the broader market.

  • Panasonic to exit solar production at Tesla's NY plant as partnership frays

    Panasonic to exit solar production at Tesla's NY plant as partnership frays

    TOKYO/LOS ANGELES (Reuters) - Panasonic Corp <6752.T> said it would exit solar cell production at Tesla Inc's New York plant, the latest sign of strain in a partnership where Panasonic's status as the U.S. electric vehicle (EV) maker's exclusive battery supplier is ending. The move increases uncertainty over Tesla's <TSLA.O> solar business which is already under scrutiny, having been drastically scaled back since the U.S. firm bought it for $2.6 billion in 2016. Tesla has informed New York that Panasonic's withdrawal "has no bearing on Tesla's current operations", the state said in a statement.

  • Panasonic to exit solar production at Tesla's New York plant as partnership frays

    Panasonic to exit solar production at Tesla's New York plant as partnership frays

    TOKYO/LOS ANGELES (Reuters) - Panasonic Corp <6752.T> said it would exit solar cell production at Tesla Inc's New York plant, the latest sign of strain in a partnership where Panasonic's status as the U.S. electric vehicle (EV) maker's exclusive battery supplier is ending. The move increases uncertainty over Tesla's <TSLA.O> solar business which is already under scrutiny, having been drastically scaled back since the U.S. firm bought it for $2.6 billion in 2016. Tesla has informed New York that Panasonic's withdrawal "has no bearing on Tesla's current operations", the state said in a statement.

  • Thomson Reuters StreetEvents

    Edited Transcript of 6752.T earnings conference call or presentation 3-Feb-20 10:59am GMT

    Q3 2020 Panasonic Corp Earnings Presentation

  • Another day, another record: Tesla shares march toward $1,000

    Another day, another record: Tesla shares march toward $1,000

    The latest surge was partly fuelled by Panasonic Corp <6752.T> saying on Monday its automotive battery venture with Tesla was in the black for the first time. "Investors are now starting to believe that Tesla can make mass-volume electric vehicles, and automakers, battery makers and suppliers can make money from EVs," said Cho Hyun-ryul, analyst at Samsung Securities. Short interest in Tesla stood at 13.8% as of Jan. 30, according to Refinitiv data.

  • US STOCKS-Wall Street rises as U.S. manufacturing expands in January

    US STOCKS-Wall Street rises as U.S. manufacturing expands in January

    U.S. stocks climbed on Monday as gains in Amazon and Nike as well as a surprise rebound in U.S. factory activity helped markets attempt a recovery from steep weekly losses due to concerns about the coronavirus epidemic. ISM data showed the manufacturing sector expanded in January after five straight months of contraction, indicating that a prolonged slump in business investment has probably bottomed out.

  • Tesla up 20% after Panasonic posts first quarterly profit at battery business

    Tesla up 20% after Panasonic posts first quarterly profit at battery business

    TOKYO/SAN FRANCISCO (Reuters) - Tesla Inc's stock surged 20% on Monday in its largest one-day gain since 2013, fueled by a quarterly profit at Panasonic's battery business with the U.S. car maker and an investor report predicting its shares would rise more than ten-fold by 2024. Shares of Tesla have rallied by over 30% since the car maker run by Chief Executive Elon Musk posted its second consecutive quarterly profit last Wednesday, which was viewed as a milestone for the company competing against established heavyweights including General Motors Co and BMW. The stock is up over 300% since early June, helped by Tesla's better-than-expected financial results and ramped up production at its new car factory in Shanghai.

  • Toyota-Panasonic venture to start EV battery development in April

    Toyota-Panasonic venture to start EV battery development in April

    Toyota Motor Corp and Panasonic Corp have agreed to set up a joint venture that will begin developing electric vehicle (EV) batteries from April, as the Japanese companies gear up for an expected surge in demand. The new company, called Prime Planet Energy and Solutions, will develop prismatic - or square-shaped - batteries that will be available to any automaker, the two companies said in a statement on Monday. It will begin operations on April 1 with more than 5,000 employees, with Toyota owning 51% and Panasonic holding the remainder, the pair said.

  • Bloomberg

    HP Wins $439 Million As Judge Triples Jury Price-Fix Award

    (Bloomberg) -- HP Inc. was awarded $439 million in damages against Quanta Storage Inc. and its U.S. subsidiary after a federal judge tripled a jury’s 2019 award for damages caused by a widespread scheme to inflate the price of optical disk drives.In October, a Houston jury ordered Quanta to pay HP $176 million in damages. U.S. District Judge David Hittner said Friday that Quanta hadn’t shown any reason why the jury’s findings should be set aside. He tripled the damages award, as authorized under antitrust law, to $528 million before deducting the $89 million in settlements paid by the other companies HP accused of participating in the price-fixing scheme.Other disk-drive makers like Hitachi-LG, Sony and Panasonic settled with HP over the past decade. Only Taiwan-based Quanta chose to go to trial.Andrew Lusby, an attorney for Quanta, said Friday the company was not commenting at this time on the tripled damages. The company had argued to Hittner that tripling damages would violate constitutional prohibitions on excessive punitive damages. But the judge rejected that argument, pointing out that antitrust law allows for tripling awards as compensatory rather than punitive damages.“HP hopes this judgment sends a powerful message to suppliers all over the world that there are significant consequences when you violate US antitrust laws,” Alex B. Roberts, HP’s lawyer, said in an email after Hittner ruled.The case is Hewlett-Packard Co. v Quanta Storage, 4:18-762, U.S. District Court, Southern District of Texas (Houston).To contact the reporter on this story: Laurel Calkins in New York at laurel@calkins.us.comTo contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Anthony LinFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

  • Panasonic to sell its chip unit to Taiwan's Nuvoton for $250 million

    Panasonic to sell its chip unit to Taiwan's Nuvoton for $250 million

    Panasonic Corp <6752.T> said it would sell its loss-making semiconductor unit to Taiwan's Nuvoton Technology Corp <4919.TW> for $250 million as the Japanese electronics giant struggles to lift its profit amid a lack of growth drivers. The sale is part of Panasonic's plans to cut fixed costs by 100 billion yen ($920 million) by the year ending in March 2022 by consolidating production sites and overhauling loss-making businesses. Panasonic has already divested most of its chip business as it lost to more nimble Korean and Taiwanese rivals, and has shut down or shifted its manufacturing facilities to its joint venture (JV) with Israel's Tower Semiconductor <TSEM.TA>.

  • Panasonic has no plans for new Tesla battery plant in China - CEO

    Panasonic has no plans for new Tesla battery plant in China - CEO

    Panasonic Corp <6752.T> has no plans to build a new battery plant for Tesla Inc <TSLA.O> in China, the Japanese company's chief executive said, as it struggles to make money from its existing battery business with the electric vehicle (EV) maker. "We don't have any plans at the moment to set up a production site in China for Tesla's Chinese business," CEO Kazuhiro Tsuga told reporters at a strategy briefing on Friday. "It is up to Tesla to decide whether it would use Chinese-made batteries from other manufacturers or get batteries from our Gigafactory 1 (in Nevada)," he said.

  • Tesla Reaches Preliminary Battery-Supply Deal With CATL

    Tesla Reaches Preliminary Battery-Supply Deal With CATL

    (Bloomberg) -- Tesla Inc. has reached a preliminary agreement to start using CATL as a battery supplier for cars made in China from as early as next year, and the companies are in talks to expand the relationship globally, according to people familiar with the matter.Following months of negotiations, the companies clinched a non-binding deal after Tesla Chief Executive Officer Elon Musk traveled to Shanghai in late August and met with CATL Chairman Zeng Yuqun for about 40 minutes, according to the people, who asked not to be named discussing private deliberations. Though a final agreement is expected to be signed by mid 2020, there is no guarantee that will happen, the people said.The batteries would go into Model 3 cars produced at Tesla’s factory near Shanghai, which is slated to begin operating this year. But the companies still need to iron out details such as how many batteries Tesla will purchase, and separate discussions are underway on a potential global supply contract, the people said. Tesla will use batteries from Panasonic Corp. and LG Chem Ltd. in China in the meantime, one of the people said.Securing enough domestic batteries -- the costliest part of an electric vehicle -- is crucial to Musk’s efforts to expand in the world’s biggest car market. Chinese supply would allow Palo Alto, California-based Tesla to rely less on imports, reducing any impact from tariffs that have fluctuated amid the U.S.-China trade war. It’s also likely to please Beijing, which has prioritized the building of a world-leading electric-vehicle ecosystem.CATL rose as much as 7.4% to 78.88 yuan in Shenzhen trading on Wednesday and the stock headed for its highest close since mid-September. Tesla was little changed Tuesday.Representatives for Tesla didn’t respond to requests for comment. LG Chem and CATL declined to comment, while Panasonic wasn’t immediately available to comment.For CATL, whose full name is Contemporary Amperex Technology Co. Ltd., a final agreement would bolster its profile as one of the world’s emerging battery-making powerhouses. The company, based in the southern province of Fujian, already supplies domestic EV startups including NIO Inc., as well as global carmakers Volkswagen AG and Daimler AG.Tesla has been building the Shanghai plant, its first outside the U.S., for the past nine months, with mass production targeted to start at year-end. The company is also building facilities to eventually make batteries, but in the meantime, it’s agreed to purchase them from LG Chem. The South Korean battery maker won’t have exclusive rights to be Tesla’s battery supplier, people familiar with the arrangement said in August.Should Tesla agree to a global agreement, CATL would become its second such battery partner after Osaka, Japan-based Panasonic.What Bloomberg Intelligence Says“It’s a competitive blow to Panasonic as Tesla was relying on the Japanese battery producer only. But it’s a boon for CATL and LG Chem.”\--Kevin Kim, automobiles analystTesla is likely to try having several strong suppliers, giving it negotiating power as they’ll compete and drive down battery prices, said Kevin Kim, an analyst at Bloomberg Intelligence in Hong Kong. Having several partners also helps Tesla diversify risks such as faulty batteries resulting in fires.NIO Jumps 37% After Pact With Intel on Driverless Car TechnologyBatteries make up the bulk of an electric vehicle’s cost, meaning long-term supply deals with top carmakers can easily reach billions of dollars. The price of a China-built Tesla Model 3 will start at about $50,000, cheaper than foes including NIO’s best-selling ES6.(Updates with comment from analyst in 10th paragraph)\--With assistance from Kyunghee Park, Kae Inoue, Dana Hull and Gabrielle Coppola.To contact Bloomberg News staff for this story: Haze Fan in Beijing at hfan40@bloomberg.net;Chunying Zhang in Shanghai at czhang714@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, ;Craig Trudell at ctrudell1@bloomberg.net, Ville Heiskanen, Will DaviesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Thomson Reuters StreetEvents

    Edited Transcript of 6752.T earnings conference call or presentation 31-Oct-19 10:59am GMT

    Q2 2020 Panasonic Corp Earnings Presentation

  • Japan's Panasonic profit drops 12% on trade war, higher costs

    Japan's Panasonic profit drops 12% on trade war, higher costs

    Panasonic Corp <6752.T> on Thursday reported a 12% drop in its second-quarter operating profit as the Japanese firm was hurt by the Sino-U.S. trade war and higher development costs related to its automotive business in Europe. A year earlier, Panasonic, the exclusive battery cell supplier for new electric vehicles (EVs) made by Tesla Inc <TSLA.O>, had earned 95.2 billion yen. The company maintained its profit forecast for the year through March at 300 billion yen, compared with an average estimate of 293.94 billion yen from 19 analysts.