Samsung SDI's seesawing stock rose yesterday on the news that Tesla might use batteries supplied by the company after all – but only for the tech group's energy storage products.
Earlier this week a Reuters report, citing an unnamed source, suggested that Samsung SDI, an affiliate of Samsung Electronics, was in talks with to supply batteries for a range of Tesla products including its Model 3 car. According to the Reuters report, Tesla might use Samsung SDI's batteries if the company's battery plant could not meet demand.
However, in a Tweet on Wednesday, Tesla chief executive Elon Musk announced that Tesla was "working exclusively" with Panasonic, a long-term partner and an early investor in the company, for Model 3 cells.
Samsung SDI shares fell sharply on this news.
But they rebounded Thursday on a follow-up tweet sent by Musk suggesting that the South Korean company's cells could be used for its energy products.
Tesla Energy sells batteries for businesses known as the Powerpack and the home called the Powerwall. Powerwall is a rechargeable battery that stores energy from solar panels or the grid. The unit delivered over 2,500 Powerwalls and nearly 100 Powerpacks in the quarter throughout North America, Asia, Europe and Africa in the first quarter of the year.
On Thursday, Samsung SDI's shares closed 2.75 percent higher at the end of trade in South Korea, while shares of Japan-listed Panasonic fell 2.9 percent.