TSLA's multi-billion dollar factory to produce 500,000 car batteries per year

Discussion in 'Stock Market Forum' started by downloads, Oct 27, 2014.

  1. downloads

    downloads Well-Known Member

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    http://blog.caranddriver.com/tesla-...-disruption-isnt-a-new-car-its-a-new-battery/

    Some news from Tesla Motors. Elon Musk and his crew are hard at work getting their gigafactory batter production plant up and running in Nevada. Panasonic is putting an initial $200 million, possible $300 million into building this facility. Tesla Motors itself is putting $2 to $3 billion dollars as well. The new plant is supposed to be up and running by 2017 and will produce some 500,00 batteries. Not sure whether this is specifically for Tesla or for other manufacturers as well.

    2017 should be around the time when the mass-market Tesla Model 3 will launch. A brand new type of battery is certain to come from this as a result of Tesla Motors trying to create a larger range while making them more affordable. As of right now, their batteries are coming by ship from Japan. So having a plant based in Nevada (neighboring the HQ in California) will also be sure to speed up production times. This will definitely help TSLA sell more units and bring in more revenue.
     
  2. Profit5500

    Profit5500 Senior Investor

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    Well this is a helpful piece of info. I just wonder how Tesla Motors would fair out against other big battery making companies. I cannot wait to see that Tesla 3 battery coming around to the market.
     
  3. troutski

    troutski Guest

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    It's all about saving money, although the savings won't necessarily be some great, huge sum. Tesla's set up for success in the coming years, though, and Musk really knows how to create a power company that's also creating forward-thinking technologies at the same time.
     
  4. downloads

    downloads Well-Known Member

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    Here's an unofficial list of EV battery manufacturers. Panasonic makes the batteries for Tesla Motors. I don't see any other EV automaker selling as many units as Tesla. Tesla is already selling more than they can produce in the United States. And they're also selling in Europe (number one selling car in Norway) and they're just starting to take off in China. So they going to be way ahead of the other guys.

    Even if the batteries aren't cheaper and don't increase range (which they will) having a gigantic factory in the United States is going to have a ten-fold effect for their operations and logistics.
     
  5. turt

    turt Guest

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    Hopefully we will see a more affordable car after the factory is up and running efficiently. This will really put electric cars out there.
     
  6. troutski

    troutski Guest

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    Potentially. The main issue with electric power, in general, is that a lot of it comes from the burning of fossil fuels. While electric cars are far more environmentally friendly in theory, that's not always the case in practice. An individual that charges their vehicle in an area that generates electricity through the burning of fuels isn't doing much to help the environment, although they are saving some cash. Electric might not be the best solution for our vehicles long-term.

    A better alternative might be improving the efficiency of non-fossil fuels, such as hydrogen. There's no real easy solution around burning fossil fuels, even when switching to electric.
     
  7. Sugarhill

    Sugarhill Guest

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    I'm curious as to why they are going to put the factory in Nevada. I'm sure there are some major benefits, but they would've done a lot by putting their company somewhere in the Midwest or South, like Mississippi. There are places in the States that really need businesses to start building there, if for no other reason than to get other businesses in the same area and maybe more people will move there out of overcrowded major cities. I wonder how many jobs will be created at the factory.
     
  8. JoshPosh

    JoshPosh Guest

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    I'm glad that someone is making a factory in America and not selling it off to china. Hopefully others will follow suit. America cannot afford to sell of its work to china anymore. Americans need the jobs and I hope this works out for him.
     
  9. turt

    turt Guest

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    Electric cars should pollute less and use less energy overall (if we can improve battery building/tech at least). A factory producing energy is much more efficient and an electric car is more efficient than gas and can also recharge the battery when breaking.
     
  10. downloads

    downloads Well-Known Member

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    Definitely major benefits. The state governments were all competing and putting in bids for Tesla to come to their state. Many states, including Texas (which currently has a Tesla Motors sales ban) wanted them to set up shop within their borders. You can assume there were massive tax breaks and subsidies, as well as some help with initial construction.

    These states want companies like this for publicity and showcasing. They get to seem "cool" by attracting these next generation companies. They also bring in jobs to the state. And of course the local politicians take credit for creating these jobs within their state and they gain a lot of political capital. Obviously a lot of the upper-level and highly technical jobs will be coming straight from Tesla HQ, but there are thousands of jobs across the board to be had there nonetheless.
     

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