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: Not in California
By Reclaimer77 on 2/28/2014 7:54:30 AM , Rating: 2
I don't know a lot about the constitution (I didn't grow up here), but isn't this kind of trade restriction against its spirit?

Sigh, if only everything that violated the spirit of the Constitution was made illegal. I would love to live in that world, my friend.

Fun fact, the NADA was originally formed to stop the Government from gouging Americans with extreme "luxury tax" rates. Something I'm sure nobody had a problem with at the time.

After they won that fight, they went on to Unionize the countries 15,000 some odd dealerships.

So in the eyes of the Constitution, there's nothing wrong or illegal in what the NADA is doing. People have the freedom and right here to willingly unionize, make alliances, etc etc.

I guess by your logic we shouldn't have grocery stores either. Why am I "forced" to buy my food through a third party?

I don't think this issue is nearly as, conveniently, cut and dry as you make it out to be.

But besides that, it's going to take a LONG time for Musk to make headway here. If any is to be made. In the meantime, I maintain the opinion that it's costing him sales. Without his cars being in dealerships, nation wide, he's losing visibility and public access to his vehicles.

Imagine a Tesla dealership being built right next to, oh, lets say a BMW dealership. How many sales could he pull from BMW then? I wager quite a few!

RE: Not in California
By Mint on 2/28/2014 9:17:09 AM , Rating: 2
Unions negotiate deals with companies. They don't literally outlaw non-union companies from doing business in the state.

This has nothing to do with unions, and everything to do with protectionism.

If Ford dealers want to stop Ford from selling direct, they can make an alliance and tell Ford that they will stop buying cars unless they have exclusive rights to sell Ford vehicles. Ford will then weigh that option against the cost of opening its own network of thousands of stores from scratch, and would likely choose the dealers. There is no legislation needed, and this would all arise from the same freedom to form alliances that you speak of.

I guess by your logic we shouldn't have grocery stores either. Why am I "forced" to buy my food through a third party?

Is there a law that I'm unaware of? Is it illegal for a farm to own and operate a store that carries its crops? If I drive to a farm, am I forbidden from buying a bushel of tomatoes?

AFAIK, you aren't forced to buy from a third party.

In the meantime, I maintain the opinion that it's costing him sales. Without his cars being in dealerships, nation wide, he's losing visibility and public access to his vehicles.

How can you lose sales if you have battery supply issues for a while and are selling every one you can make?

I don't understand why we have to keep repeating things to you. Tesla DOES have dealers nationwide:
They don't have enough production volume at this point to justify the same number of locations BMW, obviously.

Some states, however, have laws PREVENTING these showrooms from selling, discussing pricing, or giving test drives. The reason is that Tesla owns these showrooms.

"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Yahoo Hacked - Change Your Passwords and Security Info ASAP!
September 23, 2016, 5:45 AM
A is for Apples
September 23, 2016, 5:32 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

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