Summary
Tesla, Inc. (TSLA) filed an 8-K on October 29, 2013, to report an amendment to its Supply Agreement with Panasonic Corporation. This amendment is significant as it extends the battery cell supply agreement by two years, now running until December 31, 2017. It also establishes long-term preferential pricing and quantities for lithium-ion battery cells that Tesla will purchase from Panasonic throughout the extended term, specifically from 2014 to 2017. This development is crucial for investors as it secures a critical component for Tesla's vehicle production for an extended period and provides more certainty around supply chain costs. The continued partnership with Panasonic, a significant shareholder, underscores the strategic importance of this relationship for both companies and for Tesla's manufacturing capabilities and future growth prospects.
Key Highlights
- 1Amendment to Supply Agreement with Panasonic Corporation extending the term by two years to December 31, 2017.
- 2Establishes long-term preferential prices and quantities for lithium-ion battery cells to be purchased by Tesla from Panasonic.
- 3The preferential terms cover the period from 2014 through 2017.
- 4Secures a key component (lithium-ion battery cells) for Tesla's vehicle production through 2017.
- 5Reinforces the strategic partnership between Tesla and Panasonic, a significant shareholder.