Panasonic sold its stake in electric car maker Tesla for about 400 billion yen ($3.61 billion) in the year ended March, a spokesperson for the Japanese company said today.
The sale comes as the bicycles-to-hair dryers conglomerate is seeking to reduce its dependence on Tesla and raise cash for investments.
Panasonic's battery business is dominated by Elon Musk's Tesla, but the two firms have had a tense relationship at times with executives trading barbs publicly.
Panasonic bought 1.4 million Tesla shares at $21.15 each in 2010 for about $30m. That stake was worth $730m at the end of March 2020.
The shares have gained almost seven fold since then and closed up 3.5% at $679.82 each last night.
While Panasonic gave financial backing to Tesla when it was smaller, the automaker's expansion means there's no need for capital ties, analysts said added.
Panasonic's shares closed up 4.9% on Friday.
The stake sale will not affect the partnership with Tesla, the Panasonic spokesperson said, and was made as part of a review of shareholdings in line with corporate governance guidelines.
The sale comes as the automaker is diversifying its own battery supply chain.
Tesla has struck deals with South Korea's LG Energy Solution, a unit of LG Chem, and China's with Reuters reporting the latter is planning a plant in Shanghai near the automaker's production base.
Panasonic said earlier this year it would buy the shares of US supply-chain software company Blue Yonder that it does not already own, in a $7.1 billion deal.
Its biggest such deal in a decade, the price raised the eyebrows of analysts who pointed to the firm's spotty M&A track record.
