Tesla Could Run Out Of Batteries If It Makes Model Y Next Year, Says Panasonic. So What Now?

Tesla is known for continually pushing forward its evolution of electric vehicles from one model to the next. So far (including the original roadster), it has launched four models and, next year, that will become five when the Tesla Model Y enters production.

So far, Tesla has relied on Panasonic as one of the main suppliers for the lithium-ion cells its cars need. The two companies jointly invested in Tesla’s Gigafactory 1.

But in recent months, the Tesla Panasonic relationship has soured. Tesla has complained about the restrictions imposed on its Model 3 production by Panasonic’s low cell output, rumors have flow around about quality control at Gigafactory 1, and now Panasonic has warned it will suffer lower profits this year as a result of many different factors — including automotive investment.

The Model Y entering production might appear to be a good thing for Panasonic, as it would increase the company’s sales. But, its CEO warned last week, if Tesla pushes ahead with Model Y production next year, it may find itself running out of battery cells.

So what now? What’s the solution? And can Tesla get through it?

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