Panasonic Corp sold its stake in electric car maker Tesla Inc for about $ 400 billion. Yen ($ 3.61 billion) In the year ending March, a spokesman for the Japanese company said Friday.
The sale comes as cyclists to the hair dryer conglomerate seek to reduce its reliance on Tesla and raise cash to invest in growth.
Panasonic’s battery business is dominated by Elon Musk’s Tesla, but the two companies have at times had a tense relationship with executives who trade barbs in public.
Panasonic bought 1.4 million Tesla shares for $ 21.15 each in 2010 for approx. $ 30 million. This effort was worth $ 730 million at the end of March 2020. The shares have gained nearly seven times since then and opened up 3.5% to $ 679.82 each on Thursday.
“The impact of cryptocurrencies may have pushed Tesla’s stock price above its intrinsic value, making it a good time to sell,” said Hideki Yasuda, an analyst at the Ace Research Institute.
Musk said in February that his company bought bitcoin and would take payment in the cryptocurrency, a decision he later reversed, and his comments on Twitter drive fluctuations in the price of such assets.
While Panasonic provided Tesla with financial support when it was smaller, the automaker’s expansion means there is no need for capital tied up, Yasuda added. Panasonic’s shares rose 4.2% on Friday.
The pan-selling questioner said the stock sale will not affect the partnership with Tesla but will come as the automaker diversifies its own supply chain for batteries.
Tesla has entered into agreements with South Korea’s LG Energy Solution, a unit of LG Chem and China’s CATL, where Reuters reports that the latter is planning a plant in Shanghai near the carmaker’s production base.
Panasonic said earlier this year that it would buy shares in US-based supply chain software company Blue Yonder, which it does not already own, for $ 7.1 billion. Appointment. Its biggest such deal in a decade, the price raised the eyebrows of analysts who pointed to the company’s spotty M&A track record.
($ 1 = 110.8700 yen)
(Reporting by Chang-Ran Kim, Tim Kelly, Sam Nussey and Shinji Kitamura; Edited by Himani Sarkar and Kim Coghill)