Panasonic sells its Tesla shares for $3.8 billion and stands out on the stock market
Panasonic divested all of its shares in Tesla during its final fiscal year, which ended in March, a company spokesperson revealed to Asia Nikkei.
The Japanese multinational, which was looking for cash to make strategic investments with this operation, has obtained 400,000 million yen, almost $3.8 billion, with this sale. The news has been received by the market in a positive way and this Friday it rises more than 4.5% in Tokyo.
The Japanese conglomerate invested in the company that Elon Musk founded in 2010, after signing their first contract a year earlier. According to the Panasonic spokesperson, this business relationship will not change, which includes the supply of batteries for its electric vehicles. Despite this decade-long bond, Tesla’s shareholding has led the two companies into a strained relationship at times.
Panasonic’s initial investment provided Tesla with significant backing, already coming shortly after its Nasdaq premiere, while marking a step forward for the expansion of the Japanese company’s auto battery business.
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This bet has brought Panasonic a significant benefit. They bought 1.4 million shares of Tesla at $21.15 each in 2010 for about $30 million. That stake was worth $730 million at the end of March 2020, when the price of the car maker shares began to skyrocket.
As Asia Nikkei points out, all the shares were sold at the end of March, representing a large part of the 429.9 billion yen (almost $3.9 billion) of “income from the sale and redemption of investments” that reflect its latest results. .
The goal of this divestment is to finance new strategic investments. Thus, the sale helps satisfy Panasonic’s growing capital appetite. In addition to a $7.1 billion deal to buy US supply chain software developer Blue Yonder, announced in April, the company continues to invest in the growth of its car battery operations.