Tokyo-Panasonic sold its Electronic car maker Tesla A spokesperson for the Japanese company said on Friday that in the year ending in March, the company bought the company for about 400 billion yen (3.61 billion U.S. dollars).
The sale comes at a time when the bicycle-to-hair dryer conglomerate seeks to reduce its dependence on Tesla and raise cash for investment.
Panasonic purchased 1.4 million Tesla shares at a price of approximately US$30 million in 2010 at a price of US$21.15 per share. By the end of March 2020, the shares are worth 730 million U.S. dollars. Since then, the stock has risen nearly 7 times and closed up 3.5% on Thursday to $679.82 per share.
Ace Research Institute analyst Hideki Yasuda said: “The impact of crypto assets may have pushed Tesla’s stock price above its intrinsic value, making it a good time to sell.”
Musk said in February that his company bought bitcoin and will pay in cryptocurrency. He later overturned this decision, and his comments on Twitter have driven the price of such assets to fluctuate.
Yasuda added that although Panasonic provided financial support when Tesla was small, the automaker’s expansion meant that capital relationships were not required. Panasonic shares closed up 4.9% on Friday.
A Panasonic spokesperson said that the equity sale will not affect the partnership with Tesla and is part of the review of equity in accordance with corporate governance guidelines.
The sale comes at a time when the automaker is diversifying its own battery supply chain.
Tesla has reached a deal with LG Energy Solution, a subsidiary of South Korea’s LG Chemical, China’s According to Reuters, CATL is planning to build a plant in Shanghai near the production base of the automaker.
Panasonic said earlier this year that it would buy shares https://www.reuters.com/business/panasonic-says-it-will-buy-us-supply-chain-software-firm-blue-yonder-2021-04-23 Japan acquired Blue Yonder, an unowned US supply chain software company, for USD 7.1 billion. This was the largest such transaction in a decade, and the price caught the attention of analysts who pointed out the company’s record of mergers and acquisitions was uneven.