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041119 Tesla Gigafactory 1.jpg Photo: Wikimedia
An aerial view of Gigafactory 1 near Reno, Nevada Gigafactory.

Tesla refutes report stating frozen spending on $4.5 billion Gigafactory

The company’s stock prices dropped again for the second week in a row from developing concern over production.

Early this morning, Nikkei Asian Review reported that Tesla and Panasonic were freezing spending on the $4.5 billion Gigafactory, the world’s largest EV battery plant, near Reno, Nevada due to the growing concerns about the lessening demand for Tesla’s product.

Tesla has since disputed the report, insisting that both companies continue to supply funds to the project.

Below is Tesla’s full statement:

“Both Tesla and Panasonic continue to invest substantial funds into Gigafactory. That said, we believe there is far more output to be gained from improving existing production equipment than was previously estimated. We are seeing significant gains from upgrading existing lines to increase output, which allows Tesla and Panasonic to achieve the same output with less spent on new equipment purchases. However, we will of course continue to make new investments in Gigafactory 1, as needed. Most importantly, contrary to what is implied in this report, our demand for cells continues to outpace supply. It remains the fundamental constraint on Tesla vehicle and Powerwall/Powerpack production.”

According to NASDAQ, Tesla’s stock has fallen 2.77% since yesterday. This drop is on top of the 10.7% decrease last week after Tesla failed to fulfill its projected vehicle deliveries by Q1.   

Panasonic has yet to comment. This story is ongoing.

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