Panasonic to be Supplier for Tesla Model S

Reuters reported that Panasonic Corp (NYSE:PC) plans to supply the lithium-ion battery cells for the first sedan made by Tesla Motors.

As quoted in the market news:

Panasonic is to supply enough cells for 80,000 Tesla Model S vehicles over the next four years, including meeting Tesla’s need for 6,000 preorders in 2012, the companies said.

“This supply agreement helps ensure Tesla will meet its costs and margin targets for Model S,” said a statement from Panasonic and Tesla.

Panasonic has supplied Tesla with battery cells since 2009, when Tesla produced only the Roadster, which has a price tag ranging from $109,000 to more than $140,000. The Model S sedan base model will be priced at $57,400, before a $7,500 federal tax credit and other incentives.

Click here to read the full Reuters report