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Panasonic Corp should reduce its heavy reliance on Tesla Inc by making electric vehicle batteries for other global carmakers, says Kazuhiro Tsuga, its outgoing CEO.
Tsuga, who steps down on April 1 after being CEO for nine years, warned they are entering a different phase and should explore opportunities with other EV manufacturers. He described Panasonic's reliance on Tesla as being "one-legged," insisting the company should graduate from it at some point.
It was under Tsuga when Panasonic shifted its focus away from low-margin consumer electronics to batteries, factory machines, and components.
Yuki Kusumi, the head of its automotive business, would take over as CEO of the Japanese conglomerate.
Kusumi is expected to take a year reshaping Panasonic into a holding company, making it easier to decide where to invest for long-term growth,
The Osaka-based Panasonic, which expects its EV battery business to be profitable this fiscal year, put up a $5 billion battery factory with Tesla near Reno, Nevada.
Panasonic is also looking at several investments, such as putting up a new battery factory in Europe and mass-producing lithium-ion battery cells.
