Panasonic's CEO says Elon Musk is a genius — but can be be 'overly optimistic'

• Panasonic's CEO has a warning for aspiring entrepreneurs: don't emulate Elon Musk.
• Kazuhiro Tsuga told a room of young people that the Tesla leader is a "genius," but that he can sometimes be "overly optimistic."
• Panasonic and Tesla produce batteries in Nevada for electric vehicles, but the two companies' relationship on solar roofs has been strained this year.

Tesla's Chief Executive Officer Elon Musk is "a genius who defies common sense and can be overly optimistic," Panasonic's CEO said on Tuesday, as the Japanese firm cautiously moves to expand a battery partnership with the U.S. carmaker.

"I believe only geniuses can hold onto big visions, and a genius I know is Elon Musk," Kazuhiro Tsuga said at an event for young entrepreneurs.

The remarks on Musk come as Panasonic and Tesla are in talks to expand their joint battery plant in Nevada after production troubles and delays at Tesla strained their partnership over the past few years.

With excessive optimism, a genius like Musk can ignore what is inconvenient and run straight ahead towards his vision, Tsuga said at the event. "Compared to that vision, most things don't really matter."

"I can never imitate him," he said, adding it is probably safe for everyone not to do so.

Panasonic's partnership with Tesla dates back more than a decade, but it was Tsuga who made a $1.6 billion bet on the Nevada battery factory, which continues to see increased demand. Reuters reported in May that the two companies have been in talks to expand the joint plant in Nevada, which is now profitable.

But in other areas, the two companies' cooperation appears have have been strained. Panasonic plans to exit its part of Tesla's solar factory Buffalo, New York factory by September as Tesla struggles to increase its solar energy business to meaningful levels. Tesla will continue with its work there without Panasonic and its 380 workers.