Panasonic CEO Tsuga says company should cut dependence on Tesla

Panasonic Corp’s outgoing CEO Kazuhiro Tsuga said the company will need to decrease its heavy reliance on Tesla Inc by making batteries more compatible with electric automobiles from other worldwide automakers, the Financial Times reported on Sunday.

“At some point, we need to graduate from our one-legged approach of relying solely on Tesla,” Tsuga, who will step down after nine years as CEO by April 1, informed the newspaper in an interview.

“We are entering a different phase and we need to keep an eye on supplying manufacturers other than Tesla.”

The Japanese company announced in November that Tsuga would step down in April serving nine years at the helm and that Yuki Kusumi, the head of its automotive business, would take over.

Under Tsuga’s leadership, Panasonic has modified its focus away from low-margin consumer electronics to batteries, factory machines, and parts. The company said last month it anticipates its battery business supplying Tesla to be profitable this financial year.

Panasonic has partnered with Tesla in a $5 billion battery Gigafactory near Reno, Nevada.