Panasonic Sells Tesla Stake for JPY 400 Billion
Panasonic sells Tesla stake for $3.6 billion (roughly Rs. 26,710 crores), may use cash for strategic investments
Panasonic sold its stake in electric car maker Tesla for about JPY 400 billion (roughly Rs. 26,790 crores) in the year ended March, a spokesperson for the Japanese company said on Friday.
The sale comes as the bicycles-to-hair dryers conglomerate is seeking to reduce its dependence on Tesla and raise cash for investing in growth.
Panasonic’s battery business is dominated by Elon Musk’s Tesla, but the two firms have had a tense relationship at times with executives trading barbs publicly.
Panasonic bought 1.4 million Tesla shares at $21.15 (roughly Rs. 1,570) each in 2010 for about $30 million (roughly Rs. 220 crores). That stake was worth $730 million (roughly Rs. 5,410 crores) at the end of March 2020. The shares have gained almost seven fold since then and closed up 3.5 percent at $679.82 (roughly Rs. 50,430) apiece on Thursday.
“The impact of cryptocurrency assets may have pushed Tesla’s share price above its intrinsic value, making it a good time to sell,” said Hideki Yasuda, an analyst at Ace Research Institute.
