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Tesla Can Help With Lithium-Ion Batteries For Its Ventilators, Says ResMed's CEO

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Tesla Can Help With Lithium-Ion Batteries For Its Ventilators, Says ResMed's CEO

ResMed Inc.’s (NYSE: RMD) CEO Mick Farrell revealed that Tesla can help manufacture ventilator components along with other automakers and aerospace companies.

What Happened

Appearing on CNBC’s “Mad Money” on Wednesday, Farrell said that in 2019, the company made tens of thousands of ventilators, and has been increasing production in the last 90 days to meet the urgent worldwide demand for the breathing devices.
Asked if he had been in contact with the “legendary” Elon Musk by the Host Jim Cramer, Farell replied, “We’ve had offers from Tesla, from many other automotive manufacturers, from some of the biggest aerospace companies in the world and defense companies that can help with o-rings, screens, and screws.” He admitted that Tesla could help ResMed with Lithium-ion batteries. 

Referring to Musk’s purchase and distribution of lower-end ResMed BiPAP machines, which the company terms as “non-invasive ventilators” to hospitals in New York, Farell heaped praise on Tesla Inc.'s (NASDAQ: TSLA) CEO saying, “I think it’s great what Elon did.”
Musk is helping to address the shortage of ventilators and on Wednesday tweeted, “We have extra FDA-approved ventilators. Will ship to hospitals worldwide within Tesla delivery regions. Device & shipping cost are free. Only requirement is that the vents are needed immediately for patients, not stored in a warehouse. Please [let] me or @Tesla know.”

Why It Matters

Towards the end of March, Tesla delivered 1000 respirators to California, which were dispatched to Los Angeles. Musk has been sourcing ventilators from ResMed, Philips, and Medtronic PLC (NYSE: MDT) and said he would be giving them away “whether we buy them or build them.”
While Musk has been helping out with the ventilators, there is still a significant shortage in supply. New York Governor Andrew Cuomo said the state needs 30,000 ventilators to deal with the outbreak.

Tesla announced that it would reopen its gigafactory in New York to produce ventilators. The company is also making the devices at its Fremont, California factory.

Price Action

ResMed shares traded 0.49% higher at $142.99 in the after hours session on Wednesday. The shares had closed the regular session 3.39% lower at $142.29.

Photo Credit: Courtesy of Tesla.

 

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