Panasonic Corporation has bared plans to invest more than $256 million in Elon Musk's Tesla Motors. The investment aims to boost Tesla's New York production facility that makes photovoltaic (PV) cells and modules. The move further deepens the partnership between the two tech giants. Since the announcement, Tesla's shares were up by 3.5 percent to $220.75 each on early trading, December 27.

The move aims to focus Panasonic on automotive components and bigger corporate clients. The Japan-based corporation has previously told the public of its plans to retreat from low-margin consumer electronics. Aside from Panasonic TVs and the Lumix camera brand, the company has struggled with its other electronic products.

Aside from investing in Tesla's factory in Buffalo, New York, Panasonic has also landed a long-term commitment from the US car maker. According to Reuters, the two companies intend to start production of PV modules in the summer of 2017. Both companies have also bared plans to increase one gigawatt of module production by the start of 2019. The investment plan was first announced in October, but Panasonic and Tesla Motors did not disclose further investment details.

Tesla is now exclusively working with Panasonic to supply batteries for its first mass-produced car, the Model 3. The Japanese company was also the exclusive battery supplier for Tesla's Model S and Model X.

In other news, Tesla is reportedly planning to expand its presence in China. The Chinese market is considered as the world's largest automobile market. According to Yahoo, China has announced a new policy that will allow foreign electric car manufacturers to invest in the country. The new development will allow Tesla to venture in new waters, further fueling Elon Musk's plans for global expansion.