Telsa has claimed the supplies of batteries from Panasonic is a "fundamental constraint" on its production line.
The electric car maker has said it isn't getting enough batteries from lines operated by Panasonic in the automarker's Gigafactory in Reno, Nevada, and so it is struggling to keep with its ideal number of home energy storage products and cars.
Tesla has said that both firms believe the way forward is still using the equipment already in place, but they believe more batteries can be made.
The statement follows reports claiming that Panasonic would be changing plans for two of the Tesla Gigafactories, and that the company "froze" a decision to increase $1.35 billion of investment by $900 million in order to "reduce its dependence on the automaker".
However, a spokesperson for Tesla has denied the report, and said both companies "continue to invest substantial funds into Gigafactory".
They rep also added that the firm thinks there is "far more output to be gained from improving existing production equipment than was previously estimated".
Indeed, the spokesperson also noted that production lines updated since the Gigafactory's launch in 2016 are "seeing significant gain", allowing the two firms "to achieve the same output with less spent on new equipment purchases".