Tesla (TSLA) Looks Beyond Panasonic for Battery Suppliers

Tesla Motors (Nasdaq: TSLA) and Panasonic (OTCBB: PCRFY) recent inked an expanded battery supply contract, which should run several years and be beneficial for both parties. But, that doesn't mean Tesla isn't looking to diversify its supply chain even further.

Bloomberg -- citing Yonhap News -- reported Monday that Tesla has been in discussions with South Korea-based LG Chem and Samsung SDI as potential lithium-ion battery suppliers. Discussions were affirmed by Jeff Evanson, Tesla's VP of Investor Relations.

Evanson noted that it would take several years before other companies were qualified to supply batteries to Tesla.

The Tesla and Panasonic contract is estimated to be enough for production of around 330,000 cars.

Notably, Tesla was recently rumored to be in talks with Samsung over a potential battery-supply arrangement. No word from either company was officially made to address the chatter.

Shares of Tesla are lower in early trading Monday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Tesla (TSLA) call put ratio 1 call to 1 put
• China Urges Carmakers To Curb Irrational Competition: MIIT - Bloomberg
• China Pharma says it has no explanation for unusual stock activity