Tesla wants to use a SolarCity Corp (NASDAQ:SCTY) facility in Buffalo, N.Y., to create solar panels. This will include the production of photovoltaic cells and modules. It has entered into a non-binding letter of intent with Panasonic for the effort.
The goal of this effort is to create solar panels that will easily work with Tesla’s Powerwall and Powerpack products. TSLA is planning a long-term purchase commitment for the cells from Panasonic. Installation of the solar panels will be carried out by SolarCity.
“We are excited to expand our partnership with Panasonic as we move towards a combined Tesla and SolarCity,” JB Straubel, Chief Technical Officer and Co-founder of Tesla, said in a statement. “By working together on solar, we will be able to accelerate production of high-efficiency, extremely reliable solar cells and modules at the best cost.”
The decision to work with Panasonic to create solar panels will be dependent on Tesla acquiring SolarCity. The deal still needs approval from TSLA shareholders before the acquisition can be completed. Uncertainty concerning the deal could result in shareholders voting against the electric car company acquiring SCTY.
This wouldn’t be the first time that Tesla and Panasonic have worked together. The two also teamed up on TSLA’s new gigafactory, which was created to handle battery cell production. The grand opening event for the gigafactory was held on July 29, 2016.
TSLA stock and SCTY stock were down 1% and PCRFY stock was up 1% as of Noon Monday.