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Tesla, Panasonic Temper Expansion Plans for Battery Factory

  • Carmaker says more output to be gained from existing equipment
  • Electric-vehicle maker’s shares drop as demand concerns deepen
Artist rendering of the Tesla Gigafactory 1 in Storey County, Nevada. 

Artist rendering of the Tesla Gigafactory 1 in Storey County, Nevada. 

Source: Tesla

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Tesla Inc. and Panasonic Corp. are reportedly tempering expansion plans for the battery gigafactory they’ve plugged billions into the last few years, deepening concerns about demand for the carmaker’s electric vehicles.

The maker of the Model 3 sedan said Thursday that while it’s going to continue making new investment as needed in its plant outside Reno, Nevada, existing equipment may be able to produce far more output than previously estimated. Panasonic said it will study additional investment in collaboration with Tesla, following a Nikkei report that said the two had frozen spending plans.