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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 Reclaimer77 on 2/27/2014 12:21:09 PM , Rating: 0
Their 2017 car is, IMO, going to aim for the BMW 3 series in price and performance.

All I have to say is good luck! He'll need it. My experience with 3 Series owners is you would have more luck selling ice to Eskimos than prying them out of their 'superior driving machines'.

Yeah I can see people who are enjoying a sporty nimble and practical 3 Series for an overweight impractical sewing machine of a car.

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:
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
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/
(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.

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997

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