As Tesla sets up its first overseas ‘Gigafactory’ in Sahnghai, Elon Musk suggests changing relationship between Tesla and its sole battery supplier Panasonic.

While talking about Tesla’s new factory in Sahnghai, the company’s CEO Elon Musk, wrote that car battery cells will be sourced from “several companies” despite Panasonic’s efforts to strengthen its monopoly supplying batteries for US based car production.

The Osaka-based Panasonic makes a range of batteries – including those for electronics and hybrid vehicles – for a range of companies. While there is no mention of changes to Tesla’s battery partnership with Panasonic in the US, this news may significantly impact Panasonic’s battery business. Particuarly as Tesla expands into the Chinese market, the worlds largest electric car market.

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