Panasonic (PCRFY) is reportedly pulling out of Tesla’s (TSLA) Gigafactory 2, stopping all production on May 30. The Buffalo, New York, facility produces rooftop solar modules and solar cells for Tesla’s SolarGlass line.

Over 400 workers will be laid off from the plant in phases over the summer, as the Gigafactory is decommissioned and cleaned following the May 30 shutdown, Buffalo Business First reported.

Tesla introduced Panasonic to its Buffalo plant in December 2016, reportedly taking its last order from the company last August.

Panasonic has been faced with low demand from Tesla’s solar panel division, causing it to send most of its products to overseas customers, Reuters said. News reports have speculated that Tesla is sourcing solar cells from Asia at a lower cost, but no official word from the automaker has been announced, Buffalo Business First said.

According to the news outlet, the partnership between Tesla and Panasonic at Gigafactory 1 in Nevada, will not be affected. Panasonic produces lithium-ion batteries for the electric carmaker at the plant.

Shares of Panasonic stock were up 1.00% as of 10:40 a.m. EST on Wednesday while shares of Tesla stock were down 0.73% at the same time.

Logo of Panasonic Corp. is seen at CEATEC JAPAN 2011 electronics show in Chiba, east of Tokyo, October 4, 2011. The IT & Electronics comprehensive exhibition goes on till October 8.
Logo of Panasonic Corp. is seen at CEATEC JAPAN 2011 electronics show in Chiba, east of Tokyo, October 4, 2011. The IT & Electronics comprehensive exhibition goes on till October 8. Reuters