Structural Risk Analysis of Panasonic's Power Battery Business: The Dilemma of Over-Reliance on Tesla

Based on publicly available information searched, Panasonic’s power battery business is indeed facing severe challenges. The following is an analysis of the structural risks in its business model:

From industry data, Panasonic once dominated the electric vehicle battery market, but its share has continued to decline in recent years. Between 2015 and 2022, Panasonic’s market share dropped significantly from its early high levels, while Chinese companies CATL and BYD rose rapidly during the same period [1][2]. As of 2024, CATL has occupied approximately 36.8% of the global EV battery market share, and BYD about 15.7% [3].

Panasonic’s power battery business is highly dependent on Tesla as a single customer. When Tesla’s electric vehicle sales fluctuate, it directly affects Panasonic’s battery business performance. This dependency puts Panasonic in a passive position in price negotiations, making it difficult to obtain better supply terms.

Panasonic has long bet on the cylindrical battery technology route, deeply tied to Tesla’s needs. With the evolution of industry technology, new routes such as prismatic batteries and blade batteries have gradually become mainstream, and Panasonic’s technology reserves are relatively single [4].

Compared with Chinese companies, CATL and BYD have significant advantages in cost control due to their local supply chain advantages and scale effects. China controls approximately 69% of the global EV battery market [5], putting Panasonic at a disadvantage in cost competition.

Panasonic mainly serves the North American market (Tesla Gigafactories), while the world’s largest EV market is in China. Panasonic’s layout in the Chinese market is relatively lagging, missing out on the market growth dividends.

Since 2024, the growth rate of EV market demand has slowed down, and coupled with the competitive pressure Tesla itself faces, the profitability and capacity utilization of Panasonic’s battery business have both been impacted [6].

The dilemma of Panasonic’s power battery business reflects the typical risks of a business model overly dependent on a single customer. In the highly competitive global EV battery market, enterprises need to achieve customer diversification, technology route diversification, and regional market diversification to build sustainable competitive advantages. If Panasonic fails to adjust its strategy in time, its market share is expected to continue to be under pressure.

[1] Motor1 - Leading Automotive Cell Suppliers (2015-2022)
[2] Autoini - Global EV Battery Market Share 2025
[3] CleanTechnica - EV Battery Market Share H1 2023
[4] Forbes - China’s Supply Chain Dominance (2025)
[5] Reuters - China’s Lithium Battery Demand Outlook (2025)
[6] Reuters - Tesla Supplier Panasonic Kansas Plant Decision