automaker, which has long used Panasonic cells (among others) in the battery packs powering the Tesla Roadster. Tesla says Panasonic will be its “preferred” supplier of cells as the company develops packs for the forthcoming Model S and other vehicles.

“It is an honor and a powerful endorsement of our technology that Panasonic, the world’s leading battery cell manufacturer, would choose to invest in and partner with Tesla,” Tesla Motors CEO Elon Musk (pictured) said in a statement. “Panasonic offers the highest energy-density cells and industry-leading performance with cutting edge nickel-type cathode technology. We believe our partnership with them will enable us to further improve our battery pack while reducing cost.”

This deal isn’t a big surprise, given that Panasonic has a joint venture with Toyota, which has invested $50 million in Tesla, which has a separate $60 million contract to help develop the forthcoming Toyota RAV4 EV. It is nevertheless a significant development for Tesla, which also has Daimler in its corner.

Panasonic made the investment through a purchase of common stock at $21.15 a share. Panasonic’s share price climbed 3.7 percent. Tesla shares climbed $1.97, or 9 percent.

The deal was announced exactly one week after Tesla held a grand opening of its factory in Fremont. The factory is where Tesla will build the Model S sedan it says we’ll see in 2012.

Photo: Jim Merithew / Wired.com

See Also:

• Tesla’s Got the Factory, Now It Needs to Fill It
• We’ll See the New Toyota RAV4 EV Soon
• Toyota, Tesla Burnish Their Images by Teaming Up
• Share in Tesla Electrifies the Teutons

Authors: Chuck Squatriglia

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