Giant Tesla battery factory producing 'affordable' electric cars at $35,000?
A giant battery factory is planned by electric car maker Tesla which would allow it to sell as many as 500,000 vehicles a year.
Tesla Model S: New car half-price?
A mass-market electric car capable ofl 200 miles on a single charge and priced starting at $35,000 could be one of the cars off the production line in 2017. The current model S sells for almost double -$69,000.
The California car firm yesterday revealed plans for the factory that would employ up to 6,500 people , cover 1,000 acres, and cost $5 billion, said the Wall Street Journal,
Solar and wind farms would at least in part supply the huge power needs of the plant in either Nevada, New Mexico, or Arizona .Reno is thought to be a favorite.
Tesla needs its own production to hit its cost target for a more affordable car.
Tesla Chief Executive Elon Musk's idea is a "Gigafactory" that takes in raw materials and produces finished lithium-ion batteries. He has said he intends to build the factory with unidentified partners.
On Wednesday, Panasonic said it was "considering various options to strengthen our ties" with Tesla but Panasonic was not mentioned yesterday.. Panasonic, the primary battery supplier for Tesla's Model S, isthought to be considering a nearly $1 billion investment with other Japanese suppliers . Tesla's announcement yesterday didn't mention Panasonic.
When it reaches full production in 2020, the Gigafactory would produce more lithium-ion batteries than currently are produced today for all uses.
Tesla believes the new factory would reduce its battery costs by more than 30%.
The factory would require an enormous amount of electricity and natural gas to operate. An artists rendering of the complex showing a large array of solar panels and wind turbines supplying energy to the operation. Musk has said his plan is to use renewable energy.
G