A Paradigm Shift in Auto Manufacturing, the Tesla Gigafactory

Posted on July 02, 2015 by Matt Pressman

Last week, Nevada economic officials confirmed that the Tesla Gigafactory will open in a year. And, Panasonic, Tesla's battery supplier and Gigafactory partner, is already stepping up its investment and sending hundreds of its employees to the Gigafactory starting this fall. This is happening... and it's happening soon. 


Source: Motley Fool

In light of this, we decided to take another look at the massive Tesla Gigafactory. Oh yes, the location is perfect -- residing on Electric Avenue right outside Sparks, Nevada. The Tesla Gigafactory is poised, by 2020, to reach full capacity and produce more lithium ion batteries annually than were produced worldwide in 2013. Once completed, it should be the size of approximately 174 football fields. That's big. See below...

From top to bottom: 1. An aerial view showing the location of the Gigafactory and it's corporate neighbors; 2. Showing the relative size of the Gigafactory to other facilities; 3. Tesla Board Member, Kimbal Musk, shares a photo of the Gigafactory model


Source: Tesla Trails Blog 

Tesla Motors (TSLA) naysayers often point to the premium pricing of the Model S (and X) as proof positive Tesla is a niche "luxury" automaker who can never go mainstream. But, the Gigafactory is all part of Tesla's master plan to offer affordable electric vehicles. With Tesla’s Gigafactory, CEO Elon Musk has stated he’s “absolutely certain” Tesla can reduce the cost of its batteries by 30% in order to launch the much-anticipated Model 3 at a $35,000 price point with 200 miles of range.  So, will electric cars soon play on a bigger stage with internal combusion engine (ICE) vehicles? It appears that other companies are also investing in their own large-scale battery factories, albeit not as large as the Gigafactory (see below).

Source: Visual Capiltalist

In conclusion, the Tesla Gigafactory could represent a sea change in the $1.7 Trillion auto manufacturing industry. The Gigafactory illustrates a fundamental shift in how cars could be manufactured -- especially as it relates to the "heart" of an electric vehicle, the batteries. To gain a more intimate understanding of the scope of the Tesla Gigafactory project, check out this infographic (see below).

Source: Visual Capiltalist

Posted in Electric Vehicles, Elon Musk, Model S, Tesla, tesla news, TSLA



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