Print 96 comment(s) - last by sorry dog.. on Mar 3 at 12:22 PM

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

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: There arent that many rich men
By Mint on 2/27/2014 1:56:17 PM , Rating: 2
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
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.

"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki