Tesla Motors Inc (TSLA) Gigafactory has “tremendous interest from potential partners”
Tesla Motors Inc (NASDAQ:TSLA) said that some of its partners have shown potential interest in the Gigafactory. Tesla Motors is unlikely going to reveal the Gigafactory partners until the deal is finalized. We do know that Panasonic is one of the Gigafactory partners, but the others are unknown. Panasonic and Tesla have signed a “letter of intent,” but it is non-binding.
“We are gratified by the level of enthusiasm our plans for the Gigafactory have generated from suppliers throughout the battery industry. Since our announcement in late February, there has been tremendous interest from potential partners in collaborating on all aspects of the project. This has led us to take additional time to evaluate new inquiries along with our ongoing partnership discussions,” said Tesla Motors in a statement.
The Gigafactory will need around $5 billion to fund it. The partners are expected to contribute a large portion of that amount. “For an established cell player to commit here implies they were sufficiently convinced by the calculations of Tesla’s engineers to open up its own supply chain, cooperate with rivals and change their place in the industry,” said Morgan Stanley. “In our view, such an announcement would represent giga-validation.”