Tesla Details Plans for $5 Billion Gigafactory | Edmunds

Tesla Details Plans for $5 Billion Gigafactory


Just the Facts:
  • Tesla on Wednesday rolled out plans for its $5 billion "Gigafactory" that will produce enough lithium-ion batteries to power 500,000 electric vehicles annually.
  • The futuristic factory may drive down the cost of battery packs and make electric cars more affordable for consumers.
  • Tesla said it intends by 2020 to "produce more lithium-ion batteries annually than were produced worldwide in 2013."

PALO ALTO, California Tesla on Wednesday rolled out plans for its $5 billion "Gigafactory" that will produce enough lithium-ion batteries to power 500,000 electric vehicles annually.

The futuristic factory may drive down the cost of battery packs and make electric cars more affordable for consumers.

Tesla said it intends by 2020 to "produce more lithium-ion batteries annually than were produced worldwide in 2013."

The electric car company has an ambitious goal of producing a mass-market electric car in approximately three years. By 2017, Tesla plans to roll out its more affordable Tesla Gen III sedan, which is expected to be priced around $35,000, or about half the cost of the current Tesla Model S.

"By the end of the first year of volume production of our mass-market vehicle, we expect the Gigafactory will have driven down the per kWh cost of our battery pack by more than 30 percent," Tesla said in a blog post.

Tesla will kick in about $2 billion to finance the plant, with other investors adding the rest. In a separate announcement, Tesla said it will raise up to $1.84 billion in bonds to help finance the Gigafactory.

A final location for the factory, which will employ 6,500 workers, has not been selected. But Tesla said it is looking at locations in four states — Arizona, Nevada, New Mexico and Texas.

The "green" factory will be powered in part by renewable sources of energy like solar and wind.

Edmunds says: Tesla moves closer to putting an affordable electric car in your driveway.

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