Tesla and Panasonic solar cells are reportedly being sent to the Philippines
The plan was to ship most of the cells to Tesla for its Solar Roof trademark.
A majority of the Panasonic solar cells made at a Tesla plant in New York are reportedly being sent to a factory in the Philippines rather than staying in the US.
The solar cells are being purchased by HRD Singapore, which supplies solar panels to Ichijo, a Japanese eco-home building company, according to a report Thursday from Reuters.
Tesla and Panasonic teamed up to make solar cells and modules in 2016 following Tesla's acquisition of SolarCity.
However, Reuters said Panasonic's plans to ship most of the cells to Tesla for its Solar Roof trademark have fallen through "because of low demand from Tesla and a trade loophole that had fired up new foreign interest."
Tesla didn't immediately respond to a request for comment.