Panasonic to Wind Down U.S. Manufacturing of Solar Cells and Modules in Buffalo, NY in Alignment With Its Global Solar Strategy

Panasonic and Tesla will continue strong partnership at Gigafactory Nevada in Reno, NV

Panasonic to continue selling solar panels through U.S. distribution network

PVTIME - Panasonic Corporation will begin to wind down U.S. production of
photovoltaic cells and modules at Gigafactory New York in Buffalo, NY, in line
with the global solar strategy led by its Life Solutions Company. By the end of
May 2020, Panasonic will cease U.S. solar manufacturing operations and is
scheduled to exit the facility by the end of September 2020.

Panasonic is supporting Tesla in its efforts to identify and
hire qualified applicants from Panasonic’s impacted workforce. Tesla plans to hire
qualified applicants to new positions needed to support its solar and energy
manufacturing operations in Buffalo.

Panasonic’s decision is part of the company’s broader streamlining
of its global solar operations. According to Tesla, this does not impact
Tesla’s future solar growth business plans. Optimizing the development and
production capability of its photovoltaic business, Panasonic will integrate solar
into its energy solutions business. The strategic shift supports the company’s offerings
in this space including Home Energy Management System (HEMS) (1), photovoltaic modules,
storage batteries, Eco Cute heat pump systems, and EV chargers, among others.

This decision will have no impact on Panasonic and Tesla’s
strong partnership in Nevada. The two companies will continue their
industry-leading electric vehicle battery work taking place at Tesla’s
Gigafactory outside of Reno, NV.

Panasonic will also continue to sell Panasonic brand solar
panels to U.S. customers through its own distribution network.

“We are proud of what Panasonic has accomplished as a
pioneer in the solar space and the significant role Panasonic employees in
Buffalo have played in that success,” said Shinichiro Nakajima, director of Panasonic’s
Energy System Strategic Business. “The decision to transition away from U.S.
solar manufacturing in Buffalo aligns with our global solar strategy, our
efforts to optimize development and production, and supports Tesla’s long-term
plans to continue and expand its operations.”

Panasonic will provide affected employees with a severance package
that includes outplacement support. Tesla hopes to hire as many qualified
Panasonic applicants as possible to help fill job openings for its growing
operations in Buffalo. In addition, both companies will hold onsite job fairs to
help Panasonic employees explore new opportunities. Tesla is coordinating job
fairs for affected Panasonic employees, and Panasonic will host a second job
fair with other area employers to help support any employees who do not find
employment with Tesla.

Panasonic continues supply
of photovoltaic products and remains committed to comfortable, prosperous,
sustainable lifestyles

Panasonic will continue to supply photovoltaic modules globally
utilizing manufacturing partners.

Dedicated to advancing a sustainable future, Panasonic will
continue to contribute to the realization of comfortable and prosperous
lifestyles through the development and expansion of new energy management
systems and solutions.