Tesla and Panasonic are parting ways on solar cell production

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After announcing new partnerships with CATL and LG Chem, the Nikkei is reporting that the California automaker has parted ways with one of their solar cell suppliers.

Panasonic, which has been supplying solar cells to Tesla since 2016, has been struggling to ramp production at Gigafactory New York. The move comes amid an effort by the Japanese multinational electronics corporation to shed itself of unprofitable parts of its business.

As part of their partnership, Panasonic paid for the installation of the equipment at Gigafactory New York (Buffalo) that would produce the core components of Tesla’s solar panels.

The latest version of the Solar Roof, dubbed Solar Glass, uses Chinese-made cells. Panasonic has been selling the cells it produces at Giga New York to Japanese homebuilders and other clients.

Panasonic plans to continue to work with Tesla on the production of batteries for Tesla’s lineup of electric vehicles.

Tesla is planning a “Battery and Powertrain” investor day at Giga New York in April. This development might mean a major announcement as it relates to the future plans of Giga New York.

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