• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

2

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

3

Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers

1

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

2

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

3

Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
TechGlobal 500

Why Tesla Is Partnering With Panasonic on Solar Tech

By
Katie Fehrenbacher
Katie Fehrenbacher
Down Arrow Button Icon
By
Katie Fehrenbacher
Katie Fehrenbacher
Down Arrow Button Icon
October 17, 2016, 2:25 PM ET
Tour Of Tesla Motors Inc.'s Gigafactory With Remarks By Chief Executive Officer Elon Musk And Co-Founder Jeffrey Straubel
Photograph by Troy Harvey—Bloomberg via Getty Images

Electric car maker Tesla Motors, which is in the process of acquiring solar company SolarCity, liked its battery deal with Japanese giant Panasonic so much that it plans to do something similar for solar technology. It’s a deal that could indicate the limitations of SolarCity’s current solar manufacturing tech as well as the growing influence that Tesla CEO Elon Musk is having on SolarCity as the companies get ready to merge.

On Sunday night, Tesla (TSLA) dropped news that, contingent of Tesla’s acquisition of sister company SolarCity (SCTY), the combined companies plan to work with Panasonic (PCRFY) to make solar cells and modules at a factory in Buffalo, N.Y.

Tesla said that the automaker plans to use the Panasonic solar cells and modules for a panel that will work with Tesla’s batteries for homes, buildings, and the power grid. Panasonic already plays a major role—in regards to both battery manufacturing and investment—at Tesla’s huge battery factory, which is under construction outside of Reno, Nev.

The Buffalo factory was originally supposed to be used by SolarCity to make solar cells using technology that the company acquired when it bought startup Silevo about two years ago. It’s unclear if SolarCity still plans to make solar cells at the factory using the Silevo technology in addition to Panasonic’s tech.

Tesla’s new Panasonic solar deal could indicate that the Silevo technology is not yet ready to make solar cells at large volumes and at a commercial scale. It’s particularly difficult to scale up newer manufacturing technology and make it low cost enough to be economic.

Update: A spokesperson for SolarCity says that the: “SolarCity/Silevo technology remains an important and applicable component of the end solar module. Both SolarCity/Silevo and Panasonic have been working on similar cell architecture on similar process equipment already. Together we will combine the best cell components from both and integrate them into the new solar module that will be produced in Buffalo, NY.”

The collaboration also shows Musk and Tesla are having a growing influence on SolarCity, as it undergoes the planned merger. Musk appears to be using the same playbook as he’s used for Tesla’s battery factory for SolarCity’s solar manufacturing factory. Musk actually indicated a couple months ago that he might work with a large solar company on solar panels at the Buffalo factory.

In August, on a SolarCity earnings call, Musk (who joined the call for the first time) said that the company had been discussing if it wants to partner with a big solar cell manufacturer to make its solar panels. Solar cells are the core parts of the solar panel that convert sunlight into electricity. Dozens of solar cells are arranged like a honeycomb into a solar panel.

Get Data Sheet, Fortune’s technology newsletter.

Musk explained that the company has been “entertaining some discussions with strategic partners on solar cell manufacturing.” He added that “some of those could head in an interesting direction.” Musk also noted that SolarCity would still assemble solar modules, which make up a panel, and would produce the overall solar roof system.

Musk emphasized that SolarCity’s “default path” would still be to “continue with the cell engineering internally,” and grow that team. But he also remarked that “there may be some merit to bringing in a strategic partner as Tesla has with the battery cell manufacturing.”

For more on Tesla’s Gigafactory, watch:

Critics have long questioned whether or not SolarCity could effectively scale up the startup Silevo’s manufacturing technology. Silevo was founded in 2007 and developed a new type of solar cell design that uses silicon combined with other materials to make the cell more efficient and to generate more electricity from the sun.

But traditional silicon solar panels have taken many decades to become as cheap as they are today. Panasonic has been working on solar cells and panels for forty years.

At an event this summer at Tesla’s Gigafactory, Panasonic’s executive vice president Yoshihiko Yamada said that Tesla and Panasonic have moved from a relationship of supplier and customer to a partnership that is something “quite new for business.”

This story was updated on October 18th at 7:45 am pacific time to include comments from SolarCity.

About the Author
By Katie Fehrenbacher
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

US hedge fund manager Bill Ackman, CEO of Pershing Square Capital Management, speaks during the 29th annual Milken Institute Global Conference at the Beverly Hilton in Beverly Hills, California on May 4, 2026.
InvestingMicrosoft
Bill Ackman has been quietly buying Microsoft since February, when AI fears were dragging the stock
By Eva RoytburgMay 15, 2026
4 hours ago
leo
EuropeReligion
Pope Leo warns of ‘spiral of annihilation’ as AI warfare leads to symphony of destruction
By Nicole Winfield, Paolo Santalucia and The Associated PressMay 15, 2026
5 hours ago
Americans would rather live near a nuclear power plant than a data center—by a lot
AIData centers
Americans would rather live near a nuclear power plant than a data center—by a lot
By Catherina GioinoMay 15, 2026
5 hours ago
Cisco’s AI orders forecast just hit $9 billion—and the stock surged
AICFO Daily
Cisco’s AI orders forecast just hit $9 billion—and the stock surged
By Sheryl EstradaMay 15, 2026
6 hours ago
chase
CommentaryCities
San Francisco has $2 trillion in AI wealth and can’t fix its own city. That’s every city’s problem
By Chase GarbarinoMay 15, 2026
7 hours ago
Andrew Feldman, co-founder of Cerebras
NewslettersTerm Sheet
Cerebras soars almost 70% by market close in a true blockbuster IPO
By Allie GarfinkleMay 15, 2026
7 hours ago

Most Popular

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
3 days ago
Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
Success
Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
By Preston ForeMay 13, 2026
2 days ago
Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
Travel & Leisure
Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
By Catherina GioinoMay 12, 2026
3 days ago
Current price of oil as of May 14, 2026
Personal Finance
Current price of oil as of May 14, 2026
By Joseph HostetlerMay 14, 2026
1 day ago
The airplane fuel shortage is a myth propagated by airlines who want to cancel unprofitable flights, says private jet CEO
Energy
The airplane fuel shortage is a myth propagated by airlines who want to cancel unprofitable flights, says private jet CEO
By Jim EdwardsMay 14, 2026
2 days ago
Steve Jobs used a 'beer test' for interviews at Apple—if he didn’t want to drink with you, you didn’t get the job
Success
Steve Jobs used a 'beer test' for interviews at Apple—if he didn’t want to drink with you, you didn’t get the job
By Orianna Rosa RoyleMay 14, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.