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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: Talk about dreaming big...
By Reclaimer77 on 2/27/2014 4:02:19 PM , Rating: 0
People aren't buying EV's, hybrids, or plug-in hybrids.

Yet you come to Daily Tech, and that's all anyone is talking about. These vehicles are the second coming, they're taking over man!

They'll give you piles and piles of data, oh yes. And if you ignore the fact that NOBODY IS BUYING THESE, it all looks gravy.

Apparently it's only "technology" if batteries are involved.

RE: Talk about dreaming big...
By Reclaimer77 on 2/27/14, Rating: 0
RE: Talk about dreaming big...
By Spuke on 2/27/2014 5:11:37 PM , Rating: 2
What's even more telling is places like the UK and Europe. Where gas prices are way higher. Even THEY aren't buying EV's and hybrids. You would think with fuel costs like that any alternatives would be pounced on.
Great points. I honestly thought EV's and hybrids would be a slam dunk there but they aren't. I will say that I think that's odd and have no explanation for it.

RE: Talk about dreaming big...
By Mint on 2/27/2014 6:26:36 PM , Rating: 2
In some countries (esp Norway and the Netherlands), EVs/PHEVs are doing extremely well. But I do agree that it's somewhat odd.

I'd say there are three reasons EVs aren't doing well there:
1. Europeans drive less than Americans:
2. The NEDC driving cycle is a joke, and make gas cars appear to be very efficient (e.g. Jetta TDI: 46/69 NEDC, 30/42 EPA)
3. It's an economic wasteland right now, with auto sales at a 20+ year low. New technologies sell much better in growing markets, not collapsing ones.

RE: Talk about dreaming big...
By Murloc on 2/27/2014 7:04:59 PM , Rating: 2
it's also because people here are born with those gas prices.
It's normal to people to spend more on mobility.

RE: Talk about dreaming big...
By mjv.theory on 2/27/14, Rating: 0
RE: Talk about dreaming big...
By Reclaimer77 on 2/28/14, Rating: 0
RE: Talk about dreaming big...
By flyingpants1 on 2/27/2014 6:38:21 PM , Rating: 2

They have to be built before people can buy them, bro. There's exactly one 200-mile EV in the universe, and Tesla can't build them fast enough to sell them.

EVs are taking over, very slowly. Even when Tesla sells out 500,000 cars/year in 2020, according to you there will still be "nobody buying" them; they'll make up less than 1% of global car sales. That's fine. It's going to take a while, but at this point it's almost inevitable.

"Intel is investing heavily (think gazillions of dollars and bazillions of engineering man hours) in resources to create an Intel host controllers spec in order to speed time to market of the USB 3.0 technology." -- Intel blogger Nick Knupffer

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