Tesla Supplier Panasonic Delays New Battery Production To Boost Performance: Report

Panasonic Holdings Corporation PCRFY will slow down the production of its 4680 battery cells endorsed by Tesla Inc TSLA CEO Elon Musk.
The production delay is to improve the performance, reported Reuters. Panasonic has a pilot 4680 production line at its Wakayama factory in Japan.
The commercial production of the batteries will happen later than previously anticipated, during April-September in 2024.
The report noted that Panasonic had previously thought of starting production between April 2023 and March 2024.
"Mass production rescheduled to begin during 1H FY3/25 to introduce performance improvement measures that will further enhance competitiveness," the company said.
Tesla has touted 4680 battery cells, saying it is important to make cheaper and compelling electric cars.
The Tesla supplier has posted a 113% year-on-year increase in FY23 revenue to ¥8.3 trillion with an operating profit of ¥288 billion.
Panasonic sees FY24 revenue of ¥8.5 trillion with an operating profit of ¥430 billion.
Price Action: PCRFY shares closed higher by 3.28% at $10.08 on Wednesday.