Tesla Motors Inc. and Panasonic Corp. said Tuesday that they would begin producing cells for solar panels next summer at a sprawling factory opening in Buffalo, N.Y., expanding a relationship between the two technology firms.

The Palo Alto, Calif., automaker and the Japanese electronics company said they had finalized plans announced in October to begin joint production of photovoltaic cells and modules to be used in solar panels for roof tiles and other products.

The agreement builds off an existing relationship between Tesla and Panasonic, which includes making lithium ion battery cells for electric vehicles and solar storage at Tesla's $5 billion “gigafactory” being built outside Reno, Nev.

The deal announced Tuesday involves Tesla making a “long-term purchase commitment” with Panasonic for the solar cells and modules to be made at the Buffalo factory.

The 1.2-million-square-foot Buffalo factory is being built by SolarCity Corp., the San Mateo, Calif.-based solar panel company recently acquired by Tesla.

New York state is spending $750 million to build the Buffalo factory.

Tesla said it reaffirmed SolarCity's commitment to hire more than 1,400 people in Buffalo.

October home price indexes rise

U.S. home prices rose again in October as buyers bidding for scarce properties drove prices higher.

The Standard & Poor's CoreLogic Case-Shiller 20-city home price index, released Tuesday, rose 5.1 percent in October from a year earlier after climbing 5 percent in September. Prices for the 20 cities are still 7.1 percent below their July 2006 peak.

The broader Case-Shiller national home price index was up 5.6 percent in October and has fully recovered from the financial crisis.

Prices rose 10.7 percent annually in Seattle, 10.3 percent in Portland and 8.3 percent in Denver.

Home sales and prices have been helped by healthy demand, tight supplies and low mortgage rates.

Ford, Mercury brake issue probed

The U.S. government is investigating some Ford Fusion and Mercury Milan cars because the brake pedal may lose pressure, making it hard to stop the vehicle.

Three crashes were blamed on the braking issue, the National Highway Traffic Safety Administration said Tuesday. The brake pedal can go “soft” when driving on slippery or uneven surfaces. NHTSA received 141 complaints, with some reporting that their car stopped past red lights, leaving them in the middle of flowing traffic.

The investigation covers Ford Fusion and Mercury Milan cars with model years 2007 to 2009. NHTSA estimated that there are about 475,000 of those vehicles.