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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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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.


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