Cars are becoming exciting technology again. According to the AP, Panasonic will invest $30 million in Tesla Motors, or about 2 percent of the company. The Japanese electronics maker is hoping to reap some profits from the electric car movement. The company already makes batteries for Tesla, which has been selling electric sports cars since 2003. Together, the two companies plan to jointly market and sell packs of batteries themselves, a market that is likely to experience heavy growth in the next decade.
“It is an honor and a powerful endorsement of our technology that Panasonic, the world’s leading battery-cell manufacturer, would choose to invest in and partner with Tesla,” said Tesla Chief Executive Elon Musk. “We believe our partnership with them will enable us to further improve our battery pack while reducing cost.”
To date, Tesla has only sold about a thousand high-end electric cars. Investments and partnerships currently keep the motor company afloat. However, it is in a good place. The electric car market is expected to grow dramatically in the decades to come. Some companies estimate that electric cars could constitute 10 percent of the market by 2020.
Last month, Tesla opened a showroom in Tokyo with the goal of attracting Japanese investors. The showroom clearly worked. Earlier this year, Toyota also invested $50 million in Tesla. The car company also announced the opening of a new manufacturing plant in California a few days ago. The plant will build the company’s new Model S cars, which it hopes will be a hit.