By Alex Ho
Investing.com - Japanese electronics company Panasonic Corp (T:6752) is ending its partnership with Tesla Inc (NASDAQ:TSLA) to produce solar cells, according to a Nikkei report on Wednesday.
The decision was part of Panasonic’s plan to cut costs by closing underutilized production lines, according to the report.
“Both companies agree that solar cell output there is unlikely to increase, and they no longer see a need to continue joint production,” Nikkei said in the report.
The two firms announced their joint venture on solar cells in 2016, according to Nikkei, which noted that they will continue working together on automotive batteries for Tesla’s electric cars.
Share prices of Panasonic dropped 1.3% to 1,124 yen by 11:45 PM ET (03:45 GMT).