Report claims Tesla and Panasonic are lowering battery expectations

It looks like the Gigafactory in Nevada isn't expanding as soon as predicted

Tesla and Panasonic are halting their plans to expand Gigafactory 1, which is the worlds largest producer of electrical vehicle batteries.

The data comes out of a report from Japanese publication Nikkei, which claims in that location is business organisation regarding less demand for Tesla's vehicles and rising competition from legacy automakers.

Originally, Panasonic and Tesla aimed to increase the chapters of the manufacturing plant past 50 percent by 2020, but now those plans are up in the air, claims the report. Further, the 2 companies worry about the scale Tesla is expanding at, and feel that a significant investment at this stage is too risky.

Therefore information technology seems like the Californian automaker is pushing dorsum its goal of making a million cars a year for the time existence, as per the study.

The consensus is that the Gigafactory in Nevada is capable of producing 500,000 batteries per year. To put that number in perspective, Elon Musk has stated that the company is aiming to deliver betwixt 360,00 and 400,000 vehicles in 2019, equally reported by Bloomberg.

With Tesla ramping up for the release of the Model Y crossover in the fall of 2020, the companies are banking on the success of that vehicle. According to he Nikkeireport, the ii companies will reevaluate the deal depending on how successful the small SUV is.

While Panasonic is hesitant to fund the Gigafactory, Tesla told Nikkei that it's notwithstanding planning to invest in the mill as needed.

This isn't the best news for Tesla since it needs to fend off even more competitors in the space with the Volkswagen Automotive group'southward massive push into the EV space and Ford's highly predictable Mustang inspired EV.

Update 11/04/2019 five:48 PM EST:The New York Postal service is reporting that Tesla is denying the study that both information technology and Panasonic have stopped funding the Gigafactory in Nevada. "Both Tesla and Panasonic keep to invest substantial funds into Gigafactory," said a Tesla spokesperson to The Postal service.

The Spokesperson further justified the comment past proverb, "we believe there is far more output to exist gained from improving existing production equipment than there was previously estimated."

Source: Nikkei, Bloomberg, New York Postal service