View Full Version : Gigafactory

February 27th, 2014, 08:07 AM
Not sure if anyone's been watching Tesla lately.

Not only a game-changer for Tesla, but for Li-Ion battery power in general, specifically 18650s.

One year ago, Tesla was trading for $34.

Today? $255.

Can we just make Elon Musk POTUS?

This project would be great for the USA. :thumbsup::thumbsup:

Tesla Unveils Gigafactory: What Wall Street's Saying
BY Chris Ciaccia| 02/27/14 - 09:35 AM EST

NEW YORK (TheStreet) -- Tesla Motors (TSLA_) unveiled plans for its multi-billion dollar Gigafactory, and Wall Street is largely positive on the implications for the ambitious project.

Palo Alto, Calif.-based Tesla believes it will reach a production unit rate of 500,000 cars per year by 2020 because of the Gigafactory. Tesla also noted that due to the Gigafactory, battery costs would come down more than 30% by 2017, when the mass market, Gen III vehicle is slated to appear.

Shares of Tesla were higher in pre-market trading, gaining 3.3% to $261.37 on the back of the Gigafactory announcement, as well as the company's $1.6 billion convertible debt offering.

By 2020, the Gigafactory will produce 35 gigawatts worth of cell production and 50 gigawatts worth of pack production.

The factory is going to be huge, requiring anywhere between 500 and 1,000 acres, taking up 10 million square feet and housing up to 6,500 employees. It's not yet known where it will be housed, with Tesla still deciding between four states: Arizona, Texas, Nevada and New Mexico.

Tesla CEO Elon Musk's ambitions are certainly very lofty, and the Gigafactory won't come cheap. Tesla notes that the Gigafactory will cost between $4 billion and $5 billion in capital expenditures by 2020 from the company and its partners (still unnamed), with $2 billion coming from the electric car maker alone.

February 27th, 2014, 08:12 AM
Given the projected costs, I'd expect Texas to win as they give absurd tax discounts etc. On the flip side, in NM they can partner with two national Labs and be in the same state as one of the first space portals. NM has the labor force needed and desperately needs the revenue.

February 27th, 2014, 08:41 AM
I think NM has the raw materials, so it would make sense to locate there. Also, shipping to CA for assembly into cars would be cheaper.

So many devices run on 18650s, and they're becoming more common every day.

Vast majority are now imported. Very few Li-Ion production facilities in the USA.

Costs would drop significantly, and I'd guess quality would go way up. Whole lotta crappy 18650s out there on the market.

February 27th, 2014, 11:23 AM
Read about it here: Gigafactory Details and Updated Valuation (http://investcorrectly.com/20140226/jumpin-gigawatts-tesla-gigafactory-details-updated-valuation)

But just a day after it was listed as a company that's a great business but a bad stock: 3 Good Businesses, but Bad Stocks (http://investcorrectly.com/20140225/3-good-businesses-bad-stocks)