Smart investment like Panasonic: Spending $ 30 million to buy Tesla shares in 2010, now sell to earn $ 3.6 billion

Tram Ho

Panasonic sold its entire stake in Tesla for $3.6 billion to raise cash for an acquisition, according to reports from Nikkei and Financial Times. At the same time, Panasonic CEO Yuki Kusumi also shared with Bloomberg that the company is planning to make a “big” investment in the production of 4680 battery cells, a new form of lithium-ion battery from Tesla, if the production line working prototype.

Panasonic stressed that the share sale revolved around “corporate governance” and had nothing to do with its relationship with Tesla.

“The aim is to review strategic holdings according to corporate governance principles,” a company representative told the Financial Times in a statement. “It does not affect the partnership with Tesla and we continue to maintain a good relationship.”

Đầu tư khôn khéo như Panasonic: Bỏ 30 triệu USD mua cổ phiếu Tesla năm 2010, giờ bán ra để thu về 3,6 tỷ USD - Ảnh 1.

And whatever the real reason, the investment is definitely a wise business decision. Panasonic bought 1.4 million Tesla shares for $21.15 in 2010, at a cost of about $30 million.

In March 2020, these shares were worth $731 million and when sold at the end of March 2021, it allowed the company to raise about $3.6 billion. This is also the period when Tesla’s stock has risen the most, more than 6 times during that period. The proceeds will help Panasonic pay for its $7 billion acquisition of US AI supply chain specialist Blue Yonder.

Panasonic used to be Tesla’s sole source of batteries, but the American electric vehicle company recently started developing its own batteries and partnering with other suppliers including LG Chem and China’s CATL. At the same time, Panasonic recently said it would reduce its reliance on Tesla and supply batteries to other global automakers.

However, Panasonic is still planning to be an important part of Tesla’s future. The company is setting up a prototype production line for Tesla’s new 4680 battery cell. CEO Elon Musk is hoping those will allow the company to have cheaper battery packs that can make a $25,000 electric car within three years. If its prototype production line goes well, Panasonic will make a “big” investment in making them for Tesla and other automakers.

Refer to Engadget

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Source : Genk