Tesla Unveils $5 Billion Gigafactory

Cameron Aubernon
by Cameron Aubernon
tesla unveils 5 billion gigafactory

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 c ollect 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“.

Comments
Join the conversation
3 of 41 comments
  • SCE to AUX SCE to AUX on Feb 28, 2014

    Don't go to Texas, where the state is considering ways of limiting Tesla's direct sales.

  • Ruggles Ruggles on Mar 02, 2014

    There is just no way Tesla goes to TX unless he is using the Gigfactory as a bargaining chip to get the state to reverse its position on direct sales. NV IS the most likely location for this pie in the sky project. In fact, there may be no Gigfactory. Panasonic hasn't yet agreed to join. Why would they? The money hasn't been raised. And any factory that employees 6500 workers is extremely vulnerable to a Chinese competitor. Recall what happened to Solyndra.

  • Wjtinfwb How does the ICE mid-engine C8 platform work for... anything else? A sedan? SUV? With a mid engine configuration? A mid-engine SUV will have to be Suburban sized to offer the utility of a CRV. GM should dust off the Omega platform designed for the Cadillac CT6 for an SUV/Sedan offering with exceptional handling, Rear or AWD capability and acceptable space utilization. They also need to focus on interior fit & finish, trim choices and high quality final engineering and assembly. What GM doesn't need is another half-baked product with a storied and prestigious badge on the decklid and a premium price on the Monroney. No more Cimarron's, Allante's or X-cars needed to tarnish the reputation of Corvette.
  • InCogKneeToe BUILD It and they will come.By Build It, I mean a Vehicle that the Customer Wants and it works for them. It could be called Chevette for all that that matters. The Mach E's success isn't because it totes the Mustang on it.Just build what people want, the next Caravan/Taurus/Beetle/Maverick (truck).
  • YellowDuck Wait...how do you make a mid-engine crossover? Or even a 4-door coupe? Me not get.
  • 28-Cars-Later Thanks Corey. The head stud job on NOrthSTAR-T was $3K *years ago* as it involves an engine pull so rear wheel arch rust in and of itself isn't a show stopper. I'll be sure to check out the trunk as it may start to add up on deferred maintenance. Supposedly this was garaged so the underneath the rockers etc. should be decent but if those are shot its not gonna work.
  • Mark 2016 Hyundai Sonata Hybrid, G4NG engine with connecting rod bearing issues. Engine needs to be replaced, but Hyundai is denying warranty claim. I have all maintenance records from mile zero. It has been in Hyundai Service department 5 time in 4 months. They added the knock sensor and software update to let you know the engine is about to blow up. They kicked the can down the road doing patch work until the car was past the 120k extended extended warranty. I have that documentation too. So how can I join the class action law suit or find a Lawyer that handles these types of issues?
Next