Tesla Model Y may drain battery resources

Panasonic may be unable to provide enough batteries when Tesla starts selling its Model Y.

That’s according to the Japanese battery company chief executive officer Kazuhiro Tsuga, with Panasonic Tesla’s main battery supplier and partner in Gigafactory 1.

Tesla chief executive officer Elon Musk tweeted last month that Panasonic was operating at a pace that’s constrained production of Tesla’s Model 3 sedan. But Tsuga says Panasonic’s aim this year is to ramp up output (including to full 35gWh battery cell capacity) before considering more investment, Bloomberg reports.

“Batteries will run out if Tesla starts to sell the Model Y and expands its business next year. What will we do then? It’s one of a few topics to discuss with Tesla, including battery [production] in China,” Tsuga says.

Meanwhile, Tesla is still reportedly deciding whether Model Y production will be at its Fremont factory in California or Gigafactory 1 in Nevada, expecting to start the Y’s roll-out in 2020.

Electrek reports Tesla hasn’t confirmed its battery supplier for Model 3 production at its new Gigafactory 3 in Shanghai, China, the roll-out there forecast later this year.