After months of speculation, Tesla drew back the curtain on their most ambitious project to date, the Gigafactory.
Yahoo News reports the Gigafactory’s price tag would total $5 billion, $2 billion of which would directly from Tesla — including a portion from a proposed $1.6 billion convertible note offering that will also be used for future vehicle development — with current partner Panasonic and their partners fronting the remainder of the investment. Interestingly, Morgan Stanley announced it was expecting to collect underwriting fees from the note just one day after also issuing a research memo that called for a doubling of their price target for Tesla shares.
Four sites in Arizona, Nevada, New Mexico and Texas are under final consideration for the site of the Gigafactory, and the finished project will employ 6,500 workers. The first goal for the Gigafactory is to begin construction this year in time to open its doors in 2017 at the same time the low-cost Model E is set to enter showrooms, with battery costs projected to fall 30 percent in the same timeframe. The milestone will be followed by a push to increase cell and pack outputs by 35 and 50 GWh/yr by 2020, where Tesla expects to move 500,000 units a year into showrooms around the world. Despite widespread reports to the contrary, Musk told Bloomberg that Panasonic’s participation “is not 100 percent confirmed“.