One of Tesla’s longest-lasting partners, Panasonic, sold its stake in the EV manufacturer for about 400 billion yen ($3.6 billion USD) earlier this year.
The Japanese company made the sale because it is looking to reduce its dependence on Tesla and raise cash for investments, Reuters reports. Panasonic is one of Tesla’s battery suppliers and that part of its business is dominated by the American automaker.
The sale will not affect the battery supplier’s relationship with Telsa, per the company, and was simply made as part of a review of shareholdings.
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Panasonic bought its 1.4 million Tesla shares for $21.15 each in 2010 for a total of $30.1 million. Since then, though, share prices have grown enormously in value (to $679.82 on Thursday), propelling Tesla’s CEO, Elon Musk, to one of the richest people on Earth. There is, though, some concern about how long that price will last.
“The impact of crypto 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 told Reuters.
Although Panasonic offered Tesla financial backing early on, the companies’ CEOs have traded barbs over the years and the automaker has since made battery deals with other companies, like LG Chem and CATL. Panasonic, meanwhile, has been partnering with other automakers as well, like Toyota.
