Panasonic and Tesla Could Upgrade Model S and X batteries in 2019

Elon Musk wrote on Twitter that Battery cell production for Gigafactory 3 in Shanghai will be sourced locally, most likely from several companies including Panasonic.

The current sole Tesla battery supplier Panasonic will double down on the partnership and plans to move its battery operations to the U.S.

Osaka-based Panasonic has been planning to transfer the production of Tesla batteries from an in-house company for automotive and industrial systems to a new U.S.-based unit starting next April.

The move of battery production would be an opportunity to upgrade the Model S and Model X batteries. Model S and Model X 18650 battery cells are made in Japan. The Model 3 2170 cells are slightly more advanced.