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Tesla and Panasonic are freezing plans to expand the capacity of their Gigafactory 1, the world's largest EV battery plant, as concerns mount on Wall Street about weakening demand at Elon Musk's car company.
That's according to Nikkei which says they planned to raise capacity by 50% by next year, but financial problems have forced a rethink.
In response, Panasonic Corp has said it it studying further investments in battery production.
Tesla's shares have dropped 4% in pre-market trading.
Panasonic shares have taken a hit in Tokyo trading - down more than 6% - following disappointing earnings.
The Japanese firm reported a 19% drop in third-quarter operating profit and cut its annual outlook, in an earnings release out late Monday.
It said China's economic slowdown and the impact of the US-China trade war had hit demand for auto parts, air conditioners and factory equipment.
Carmaker Toyota and electronics giant Panasonic are to launch a joint venture next year to make electric vehicle (EV) batteries, they have announced.
Toyota will own 51% of the joint venture, and Panasonic the rest, the two companies said in a joint statement.
Dave Lee goes on 'safari' in Las Vegas to find out what the tech giants are showing off.
Japanese electronics giant Panasonic saw its shares fall more than 8% in morning trade in Tokyo after it reported a 4% fall in half yearly profit.
The firm has been facing stiffer costs at the battery plant it jointly runs with the US electric car maker Tesla, among other headwinds.
Net profit fell 4% to 113.6 billion yen ($1.01bn) for the six months to 30 September.
Regarding the ongoing trade war between the US and China, Panasonic said it could see risk factors ahead "as the politics and financial situation of various countries, the spread of protectionism, and downward economic swings in emerging countries" continued.
Dan Simmons gets hands on with the only copy of Panasonic's forthcoming S1R camera in existence.
A spokeswoman for Panasonic in Tokyo has confirmed to the BBC that the firm is planning to move the registration of its European headquarters from the UK to Amsterdam in October 2018.
The spokeswoman could not comment on the numbers of people who would have to move, or whether the decision was because of Brexit.
Media reports, however, say that Panasonic has been considering the move for the past 15 months, because of Brexit related concerns - such as continued access to the European single market.