Tesla Motors' Gigafactory to Help Push Out Half Million EVs/Year in 2020
February 27, 2014 9:22 AM
comment(s) - last by
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.
, 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.
, 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.
This article is over a month old, voting and posting comments is disabled
RE: Talk about dreaming big...
2/27/2014 6:26:36 PM
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...
2/27/2014 7:04:59 PM
it's also because people here are born with those gas prices.
It's normal to people to spend more on mobility.
"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference
Tesla Motors Reports Higher-Than-Expected Q4 Earnings, Slims Loss
February 19, 2014, 7:46 PM
Tesla Relieves Model S Drivers of Road Trip Anxiety with Coast to Coast Superchargers
January 27, 2014, 10:34 AM
Tesla Repays $465 Million DOE Loan 9 Years Early
May 22, 2013, 10:20 PM
Michigan Governor Signs “Anti Tesla” Bill That Bans Direct Sales, GM Applauds Decision
October 22, 2014, 8:56 AM
Report: 2015 Ford Focus Electric MSRP Slashed by $6,000, Will Retail for $29,995
October 18, 2014, 6:23 PM
Chevrolet Sonic EV to Have 200-mile Range, Debut in 2017
October 10, 2014, 12:01 PM
Auto Start-Stop Systems Will be Installed on Nearly 60% of New Vehicles by 2020
October 8, 2014, 4:19 PM
Volvo XC90 to Receive Triple-turbocharged, 450hp 2.0-liter Four-cylinder Engine
October 7, 2014, 2:29 PM
Nissan Still Trying to Make a Profit on Leaf EV
October 6, 2014, 5:46 PM
Most Popular Articles
Chinese Government Declares Digital War Against America's Top Tech Firms
October 20, 2014, 12:07 PM
Samsung Announces Galaxy S5 Plus with Snapdragon 805 Processor, LTE-A
October 22, 2014, 3:40 PM
Windows 8.1 + Android "Sell Mini PC" w/ Bay Trail Creates New PC Form Factor
October 20, 2014, 5:07 PM
Apple Releases iOS 8.1; Adds Apple Pay Support, SMS Relay, Instant Hotspot
October 20, 2014, 1:00 PM
Apple's iPad Air 2 Features Triple-core A8X Processor, 2GB of RAM
October 21, 2014, 8:32 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information