Tesla and Panasonic team up to build battery factory

Electric carmaker Tesla is set to team up with Panasonic to build a battery manufacturing plant in the US.

Tesla says the factory will produce cells, modules and packs for Tesla's electric cars.

Tesla is hoping the new arrangement with Panasonic to reduce its battery costs by 30 percent.

Tesla's revenues have nearly doubled in the second quarter. The company posted a loss of some 60-million dollars during the period. Sales of zero-emission electric vehicles currently make up less than 1 percent of the world's auto market.