Boston, MA 10/01/2013 (wallstreetpr) – Tesla Motors Inc (NASDAQ:TSLA) shares have risen more than 400% over the past one year as the market is becoming more enthusiastic about the future prospects of electric vehicles. However the investors being bullish on the growth of Tesla, they also think that the valuation is too high to buy the shares of the company.
Different from the other makers of electric vehicles who use large cell battery packs, Tesla chose to use 18650 cells and in a large number. These are the cells which are similar to those of which are found in laptops and are required for a Model S battery packs in thousands. Panasonic Corporation (ADR) (OTCMKTS:PCRFY) has got the honor for the supply of these massive batteries to Tesla Motors, thanks to the extensive history of Panasonic with Tesla including an equity investment ahead of Tesla hitting big. Currently thousands of batteries are supplied by Panasonic for Model S sedans produced by Tesla.
To get an idea about the demand created by Tesla for 18650 cells, it is estimated that Tesla will consume all the cells that entire industry consumed before the existence of Tesla. However the current facilities of Panasonic are unable to meet the demands of 18650 cells by Tesla due to which the company has limited the sales of 18650 cells until ramping up of production by the company.
Like other automakers, Tesla Motors also assorts its suppliers extensively. One of its most critical suppliers is Modine Manufacturing Co. (NYSE:MOD) which is responsible for the supplies of battery chillers for the Model S. Battery chillers play a very vital role and are very critical for the overall design of the car. These battery chillers are meant for the control of the battery temperature.
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