From a simple Tweet, Tesla’s Elon Musk allowed Samsung’s share price to drop as Panasonic’s increased by $800 million. Tesla Motors is partnering up with Panasonic Corp to provide batteries for the Model 3 which will rival the BMW 3-series.
The Model 3 sedan is a creation that promises a change from 0 to 60 mph in less than 6 seconds, high safety, autopilot features, and supercharging.
Musk tweeted that Tesla was “working exclusively with Panasonic for Model 3 cells.”
The partnership between Tesla and Panasonic Corp wasn’t completely positive. Samsung’s share price dropped by 8 percent after the realization that Panasonic Corp and Tesla would be working together. The sudden drop in Samsung’s share price comes out to be around $580 million.
The highest gain in Panasonic shares occurred after Musk’s comment, at 6.3 percent, for as long as a week. This was opposed to Samsung’s drop by 8 percent.
It is expected that the shift in share prices was due to a Reuters report that revealed possible business-related dialogue between Tesla and Samsung. The two companies were suspected to be discussing how they could provide batteries for the BMW 3-series vehicles should the companies be in need of it.
Tesla denied the rumor later. The company does plan to add Samsung SDI as another Model 3 supplier should Tesla’s battery plant fail to produce the amount of batteries needed in its business.
So far, there have been 373,000 orders for the Model 3 vehicle that sells for at least $35,000. Details about Model 3 sound promising, but Tesla has a lot to catch up on.
The company is hoping for vehicle production to increase to 500,000 by 2018. Perhaps if Tesla partnered with other companies, its yield of necessary materials would allow the company to reach its goal.