Panasonic makes the lithium cells that Tesla uses for their battery packs. I wouldn't be surprised if each 85kw pack eats $40,000. PCRFY stock is $8-ish a share, Japanese stocks are generally in the toilet lately. Is now the right time to buy?
I admit to being out of my league on this, but generally products that become commodities are subject to intense price squeezes and profit margins shrink. Look at what happened to solar panels. Batteries are a commodity and for how long will a ridiculously expensive $40K battery be relevant.
Batteries are a small percentage of Panasonic's revenue. I think you are better off with TSLA.
First I think your $40k is high. That maybe the cost of the completed battery pack after Tesla assembles it. But The raw cells are probably no more than $25k. If we use $25k and 20K units production that is $500million in annual revenue.
I quick check of PCRFY financials show annual sales of 7.8 billon yen. At 100 yen conversion that is sales of $78billon, so Tesla represents less than 1% of Panasonic sales.
Tesla success won't hurt but the value PCRFY needs to be based on a lot of other data that I don't have the time (or interest) to investigate.
I already own Tesla and SolarCity stock, which have put out nicely. Panasonic is close to an all time low, the sale off cells will continue to rise if Elon gets his way. That 1% could become 5% in a few years, unless Tesla changes cell suppliers.
What is the difference between PCRFY and PCRFF? The second one seems newer.
@Olanmills - That's a good question, still haven't found a clear answer yet, help me Google.
yeah I tried that
I'm confused by your yen conversion. Isn't a yen worth about one cent, not ten dollars or did you mean 7.8 Trillion yen?
I think he meant sales of 7.8 trillion yen, roughly $7.8 billion dollars.
I think he got the $78B part right if 7.8T yen was the intent.
Correct, I meant $78 billion.
I know that this thread is dated... but I came across it via Google as I had the same question as the poster above re. the difference between F and Y stock. I figured it out so thought I'd post it here in case others were interested:
Foreign pink-sheet stocks, whether sponsored or unsponsored, are designated with the letter "Y" at the end of their ticker symbol. Investors should also note that if they see a company with more than one 'Y' share, such as with Volkswagen, they should consult their broker as to what exactly they are getting since the multiple symbols signify different share classes.
An entirely different matter are the shares of foreign companies with ticker symbols ending in 'F' as that represents foreign ordinary shares. The "F" shares are largely unsponsored and created on what's called a grey market by brokers, who have to go to the company's home market to trade the stock. It can be much more difficult for investors to find information on "F" shares, as there are no listing requirements.
That's a good summary, thanks for the info, GR!
is panasonic a battery share ? i think its technology share..
battery only little piece...must work..but often when needed
Sometimes what was small becomes large. Then seminal events happen, so to speak.
"Panasonic (PCRFY) is reportedly considering investing in a lithium-ion battery factory that Tesla is planning to build as part of its strategy of making more affordable electric vehicles.The "giga" factory would need almost ¥100B ($979M) to construct, and would make lightweight batteries for Tesla as well as for Toyota and other automakers."
Switching TM's supply source to the new battfac would release capacity in existing facilities to supply Toyota, etc. It would certainly reshuffle the entire global battery distribution system.