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The giant Gigafactory will span 500-1000 acres of land

Tesla Motors' all-electric auto business heavily relies on batteries, so it makes sense that the company has placed a lot of emphasis on that area with Supercharger stations, replaceable battery tech and road trips to relieve range anxiety for customers. Now, Tesla is finally revealing some details on its huge, upcoming battery plant.

According to Tesla, its new factory -- dubbed "Tesla Gigafactory" -- will be located in either Nevada, Arizona, New Mexico or Texas. Tesla is likely choosing among these Southwestern states because the factory will be largely powered by solar and wind power, and the Southwest has plenty of sunshine to feed the plant.

The giant Gigafactory will span 500-1000 acres of land and have a space requirement of 10 million square feet. It'll employ around 6,500 people and aims to produce 35 GWh of cells and 50 GWh of battery packs a year. 

Tesla added that it's getting ready to produce 500,000 EVs a year in 2020, and the Gigafactory will supply those battery packs. What's more is that Tesla expects the per-kWh cost of a Tesla battery pack to be lowered by more than 30 percent once the factory is up and running for the first year. 

This is huge for Tesla, since the cost of batteries is a large fear of potential EV customers. Tesla has been working hard to ease such fears, since this will lead to more sales in the future.


The automaker recently addressed range anxiety associated with road trips by placing Supercharger stations from Los Angeles to New York, allowing for a coast-to-coast trip free of worry. 

Tesla will invest around $2 billion in the plant through 2020 while investors will pay another $2-3 billion for a total $4-5 billion investment. 

This year will be a busy one in the Gigafactory's timeline, as Tesla plans to select a location, start intial project design, engage in partner discussions, begin zoning and design, and finally start construction. 

Construction will continue through 2015, and in 2016, equipment installation is set to begin. The year 2017 will finally see production launch, and will gun for the half million EVs produced in 2020. 

Tesla has proven time and time again that being the small guy in the auto race doesn't mean coming in last. In May 2013, Tesla repaid its $465 million loan from the U.S. Department of Energy (DOE) nine years earlier than expected from the original 2022 due date. 
 
Tesla is currently rocking the auto world by fighting auto dealers around the U.S. in order to sell its Model S on its own without any middlemen. Tesla CEO Elon Musk said he'd make the fight a federal case if he had to.

For Q4 2013, Tesla reported a profit of $46 million and saw its loss decrease to $16.2 million, which is much slimmer than the $90 million loss a year earlier. 

Tesla shares rose $34.65 to close at $252.30 Tuesday, and kept rising in premarket trading early Wednesday hitting $258.60. 

Source: Tesla Motors



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There arent that many rich men
By Shadowmaster625 on 2/27/2014 10:22:44 AM , Rating: -1
There isnt enough Federal Reserve funny money being thrown around to filter down to that many people. People who work for their money are not going to waste it on gimmicky battery powered crap that does nothing to either save money or help the environment. TSLA only sells rich man toys and the poor cannot be fleeced enough to make enough people rich enough to buy 500000 toy cars a year.




RE: There arent that many rich men
By Zak on 2/27/2014 10:31:14 AM , Rating: 5
You do realize than when ICE cars came out at first they were only rich man toys, right? Then Ford made the car popular and accessible to everybody. You can't be that dumb, can you? Can you?


RE: There arent that many rich men
By therealnickdanger on 2/27/2014 10:43:21 AM , Rating: 5
This is the Internet, he can be as dumb as he chooses.


RE: There arent that many rich men
By tanjali on 2/27/14, Rating: 0
RE: There arent that many rich men
By WLee40 on 2/27/2014 11:13:59 AM , Rating: 2
Oh yes he can, he demonstrated that quite well.
Why are people so resistant to change? I see EVs as the most likely direction of cars in the future.


RE: There arent that many rich men
By Reclaimer77 on 2/27/14, Rating: 0
RE: There arent that many rich men
By DFranch on 2/27/2014 12:44:01 PM , Rating: 2
I believe the OP was saying that until Henry Ford came along cars were only affordable by the wealthy. Ford changed that by making cars everybody could afford.

It's kind of like Plasma TV's. Remember when they cost $10,000 or more. They were rich folk toys. Eventually they came down in price and most people were able to buy them. The same will happen with EV's eventually.


RE: There arent that many rich men
By superflex on 2/27/2014 12:47:01 PM , Rating: 2
He also raised the wages of his employees so they could afford the Model T.
I don't see Musk making that offer.


RE: There arent that many rich men
By ilt24 on 2/27/2014 12:55:32 PM , Rating: 2
quote:
He also raised the wages of his employees so they could afford the Model T.


Not really...from Ford.com

"The $5-a-day Workday
After the success of the moving assembly line, Henry Ford had another transformative idea: in January 1914, he startled the world by announcing that Ford Motor Company would pay $5 a day to its workers. The pay increase would also be accompanied by a shorter workday (from nine to eight hours). While this rate didn't automatically apply to every worker, it more than doubled the average autoworker's wage.

While Henry's primary objective was to reduce worker attrition—labor turnover from monotonous assembly line work was high—newspapers from all over the world reported the story as an extraordinary gesture of goodwill."

http://corporate.ford.com/news-center/press-releas...


RE: There arent that many rich men
By Spuke on 2/27/2014 2:35:37 PM , Rating: 2
quote:
Not really...from Ford.com
Not really? You just proved the other posters point. LOL! Like he said, Musk hasn't raised his workers wages so they can afford the cars they build. Musk is no saint and no revolutionary, he's a just guy that that's trying to carve out a niche to make some money from. He found one, make EV's for the wealthy. Sounds good to me. But you clowns think he's doing something just for you. LOL!

Facts:
1. You can't afford the Model S.
2. You won't be able to afford the Model X either.
3. The Model E will also be outside of the magic DT $20,000 price point too. Therefore you can't afford that one either.

Why are so many of you swinging from Musk's potato sack?


By flyingpants1 on 2/27/2014 4:25:53 PM , Rating: 2
quote:
Musk hasn't raised his workers wages so they can afford the cars they build.


HAHAHAHAHAHAHAHA!


RE: There arent that many rich men
By SPOOFE on 3/1/2014 12:06:07 AM , Rating: 1
quote:
Musk is no saint and no revolutionary

What kind if fucked up logic is that? Are we to assume you only buy things from companies that ARE run by saints? Which companies might those be?

Concession stand workers don't get paid enough to fund their own summer blockbusters. Pilots don't make enough to buy their own 747. Doctors don't get paid enough to buy their own hospital. Physicists don't get paid enough to buy their own Large Hadron Colliders.

Yet Musk is a scumbag because he has employees that can't afford a premium car?

Look, it's one thing to think that his product isn't for you, but Christ, you Tesla haters make up some of the stupidest shit in your criticisms.


RE: There arent that many rich men
By Zak on 2/27/2014 12:51:03 PM , Rating: 2
That's not the point, I wasn't comparing Musk to Ford. You missing the point on purpose to be obtuse. The point is that pretty much everything is expensive at first and with time becomes more affordable. Once the tech becomes less expensive and easier to mass produce the prices will come down. Cars were at first very expensive too and only the rich could afford them. If it wasn't Ford then someone else will do this and it ought to happen to EVs as well.


RE: There arent that many rich men
By Flunk on 2/27/2014 10:45:04 AM , Rating: 2
Yes, because nothing changes at all in 6 years. Nothing ever becomes less expensive, companies don't launch new models and new technologies are never introduced.


RE: There arent that many rich men
By 1prophet on 2/27/2014 10:46:39 AM , Rating: 5
Henry Ford

“The idea of gas engines was by no means new, but this was the first time that a really serious effort had been made to put them on the market. They were received with interest rather than enthusiasm and I do not recall any one who thought that the internal combustion engine could ever have more than a limited use. All the wise people demonstrated conclusively that the engine could not compete with steam. They never thought that it might carve out a career for itself. That is the way with wise people--they are so wise and practical that they always know to a dot just why something cannot be done; they always know the limitations. That is why I never employ an expert in full bloom. If ever I wanted to kill opposition by unfair means I would endow the opposition with experts. They would have so much good advice that I could be sure they would do little work.”

more relevant quotes by Henry Ford

“If I had asked people what they wanted, they would have said faster horses.”

“The man who thinks he can and the man who thinks he can't are both right. Which one are you?”

“It has been my observation that most people get ahead during the time that others waste”

“Don't find fault, find a remedy; anybody can complain”


RE: There arent that many rich men
By TSS on 2/27/2014 1:02:33 PM , Rating: 3
Overlooking one thing here: Henry Ford invented the Assembly Line, which made the Model T the great car it was. Without that the model T would've been the same as those lamborghini's made by craftsman by hand, and it would've never been able to compete with steam.

Elon Musk will not have such luck. There are other problems facing EV's that will have to be overcome to make it viable out in the field. Charging - just how many super charging stations can the electricity grid sustain? Power's gotta come from somewhere. Raw Resources - unless Musk plans to open up a few lithium mines this price isn't going to drop, quite the opposite. New technology - there's no way batteries will see the research advances ICE cars saw in the beginning. It's not new tech, advances in EV efficiency and batteries have been slow indeed.

And finally, the most important of all - the USA as a nation. When Henry Ford made the Model T you could say america was just waking up as a production powerhouse, at the start of a golden century for the USA. Now, it's riddled with debt.

Cars at 100k or 10k... when you've got to work 2 jobs at minimum wage to not even put enough food on the table.... how are you going to afford a EV? The national debt is going up with $1,2 trillion a year, that *will* continue and by 2020 it *will* be ~$25 trillion, putting further strain on social programs and with those the money people at the bottom can spend. Student loan debt is still rising - $1,1 trillion now - putting further strain on what future generations can afford. Car loans have already been stretched to 96 months, how much longer untill you're paying for a single car all your adult life? This all if the Dollar can survive that long. Fed tapering, printing $75 billion a month instead of $85 billion a month, has already caused several currencies to collapse, how long before the dollar itself gets it? $75 billion a month of new money for the next 6 years = $5,4 trillion. If the Fed doesn't, stocks will take a nosedive because that's the only thing keeping them up, tesla's stock as well.

It's be nice if the future with EV's is finally here, i do belive they carry more benifits then ICE cars do, especially enviromentally if the batteries are made/recycled properly. But i'm not seeing it. Too many things that are out of Musk's control.


RE: There arent that many rich men
By Mint on 2/27/2014 1:56:17 PM , Rating: 2
quote:
Elon Musk will not have such luck. There are other problems facing EV's that will have to be overcome to make it viable out in the field. Charging - just how many super charging stations can the electricity grid sustain? Power's gotta come from somewhere. Raw Resources - unless Musk plans to open up a few lithium mines this price isn't going to drop, quite the opposite. New technology - there's no way batteries will see the research advances ICE cars saw in the beginning. It's not new tech, advances in EV efficiency and batteries have been slow indeed.

Studies have shown that the US grid can support 100M EVs (decades away) without building any more generation capacity. EVs charge mostly at night when many plants idle, and need far less energy than you think: 100M * 12k miles/yr / (3 miles/kWh) = 400 TWh/yr, or 10% of today's annual production. Tesla's data shows well under 10% of their charging is done with superchargers.

Lithium resources aren't a problem. You only need 1-2kg of lithium carbonate per kWh, and there are ample reserves in many places around the world. Nevada has enough for all of Tesla's needs. Most lithium mined today is actually used for applications other than batteries.

Your point about 96 month car loans actually helps EVs, because they save $100-150/mo in fuel costs. $400/mo over 8 years (@3%) will pay for a $34k car, and you'll pay $150/mo in gas. $500/mo will pay for a $43k EV, and you'll pay $30/mo in fuel. And yes, tens of millions of people around the globe annually buy and run a $34k gas car, so there's no shortage of market.

If cost prevents sales from keeping up with production, then I'm sure we'll see smartphone-like finance schemes (pay as you drive, just like gasoline, but notably cheaper) to lower up front cost.

What Tesla needs to be successful is to hit their cost target for the third gen platform. That's it. Everything else you mention is a non-issue.


By sorry dog on 3/3/2014 12:22:19 PM , Rating: 2
quote:
Everything else you mention is a non-issue.


TSS just more or less said the fiscal situation of U.S. economy is rapidly going to hell in a hand basket (which is hard to argue with) and you say its a non-issue?

Wow. And just what is an issue to you?

Lemme guess...bad gas milage, and immigrants without health care.


RE: There arent that many rich men
By Mint on 2/27/2014 10:55:49 AM , Rating: 2
Their 2017 car is, IMO, going to aim for the BMW 3 series in price and performance. BMW sells 400k a year of that line.

Tesla's strongest market in 2020 is probably going to be China. That'll be 1.5B people with more inequality than the US. They bought 20M autos in 2013 and probably twice as many by 2020.

China is already about to pass the US in oil imports, so the future is only going to get worse. They're importers of natural gas, too, so that's not a solution either. EVs are going to be crucial for them, as is nuclear power, and they're already putting serious weight behind both.


RE: There arent that many rich men
By Reclaimer77 on 2/27/14, Rating: 0
RE: There arent that many rich men
By superflex on 2/27/2014 12:44:14 PM , Rating: 2
If Elon thinks the lithium miners are going to triple their output to meet his factories demand, I have a bridge to sell him.


RE: There arent that many rich men
By Zak on 2/27/2014 12:53:38 PM , Rating: 3
Um, where was the last time you've successfully funded and run a larger automotive corporation or space exploration company? If you think you know something that Musk doesn't why don't you tell him?


RE: There arent that many rich men
By Mint on 2/27/2014 2:28:27 PM , Rating: 2
Where did you get triple from? Oh, right, straight out of your a$$.

World production was 600k tonnes in 2011:
http://minerals.usgs.gov/ds/2005/140/ds140-lithi.p...
I assume that gross weight is lithium carbonate.

50 million kWh per year from this gigafactory would need around 100k tons/yr of lithium carbonate. It's a decent jump, but nowhere near "triple", and there are plenty of mines already opening up to handle that.


RE: There arent that many rich men
By Spuke on 2/27/2014 2:39:33 PM , Rating: 2
quote:
It's a decent jump, but nowhere near "triple", and there are plenty of mines already opening up to handle that.
Which one's and where are they located?


RE: There arent that many rich men
By Mint on 2/27/2014 4:04:54 PM , Rating: 2
Quebec, Canada: http://www.canadalithium/
Nevada: http://www.westernlithium.com/
http://rodinialithium.com/projects/clayton_valley/
California:
http://www.bloomberg.com/news/2012-09-19/lithium-b...
Wyoming:
http://www.uwyo.edu/uw/news/2013/04/uw-researchers...
(okay, this one is just a massive reserve right now)

There's a lot of lithium available. We just haven't had as much demand for it as other elements. This isn't a rare earth material.


RE: There arent that many rich men
By Spuke on 2/27/2014 5:21:04 PM , Rating: 2
Thanks for the info on that. I really wanted to know BTW.


By flyingpants1 on 2/27/2014 4:30:24 PM , Rating: 2
Lithium is <4% of the battery.


RE: There arent that many rich men
By Spuke on 2/27/2014 2:52:11 PM , Rating: 2
quote:
Their 2017 car is, IMO, going to aim for the BMW 3 series in price and performance. BMW sells 400k a year of that line.
3 series starts at $32,750 for a stripped 320i. But BMW customers don't buy stripped cars (cause they can afford not to). The average price of a 3 series is $45,000 so I figure the base Model E will start right around there (it'll likely be more than in 2017 but lets keep it simple). Like I asked about the Model X (apparently I didn't get the memo), the Model E is supposed to be the affordable one yet it's $25k over the touted DT perfect price point for cars. You guys (and most of America) aren't going to be able to buy that one either. So how is Tesla going to build enough cars to make that new factory pay off when they really need more average people to buy these?


RE: There arent that many rich men
By Mint on 2/27/2014 4:27:14 PM , Rating: 2
Musk keeps saying $35k, but I think he's overly optimistic and it's $40k. So let's go with that.

Why do you think they need to target lower than that? At this point they're aiming to sell 500k/yr, not 5M/yr.

In 2013, there were 15M cars sold in the US, about the same in EU+UK, 20M in China, and 5M in Japan, etc. Even if you just look at the priciest 1/4 of the global market, they only need 3% of that to hit 500k/yr.

That figure is their 2020 target, too. There's going to be more models introduced to hit it after the 2017 car.


RE: There arent that many rich men
By Spuke on 2/27/2014 5:29:41 PM , Rating: 2
If he's says 3 series is the target, he knows how much people pay for them. I doubt seriously that he'll undercut that price. Remember, 25% margins. You're not going to get that margin by pricing low. Honestly, I expect the Model E to be advertised at just under $50k with the subsidy (like he does with the Model S). Did you notice that the low end battery pack is no longer offered? Remember the S was launched at $57,500 with the subsidy, now it's $63,570 WITH the subsidy. He's already made room pricewise in the line up for the E.


RE: There arent that many rich men
By flyingpants1 on 2/27/2014 6:53:24 PM , Rating: 2
quote:
Remember, 25% margins.


No. The third-gen car will target 15% margins. As everyone likes to point out, most cars will be sold with pricey options, which drive up margins. So, figure around 31-32k for the cost of the car.

A whole Jetta is $17k, folks. Put it on a $15k Tesla skateboard, bam, done.

quote:
You're not going to get that margin by pricing low.


They'll reach high margins by having no dealerships, no unions and the cheapest car battery packs on earth.


RE: There arent that many rich men
By Mint on 2/27/2014 8:56:49 PM , Rating: 2
It's not going to be $31k. That's too low for the upscale image that Tesla wants, and Tesla will have plenty of demand at $40k plus options as they ramp up production.

They aren't VW, either. It'll take time for them to catch up to the big automakers in cutting production costs. They can't have any quality oversights arising from shortcuts, or they'll trash the reputation they've built with the Model S.


By flyingpants1 on 3/1/2014 1:28:19 AM , Rating: 2
I think $32k is plenty to build a third-generation car. That already gives a gross margin of 9.4% at the stated price.

The skateboard cost is everything. By comparison, it's pretty trivial to build a metal box with leather seats.


RE: There arent that many rich men
By DukeN on 2/27/2014 11:53:43 AM , Rating: 2
Yeah but with the Benghazi oil money from the zionist Obama regime TSLA is doomed.


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