Tesla could build massive Gigafactory in Texas, paving way for mainstream car

Feb 28, 2014
Austin Business Journal

Tesla Motors has named Texas as a possible site for its Gigafactory where battery packs for its mass-market electric vehicle could be assembled. Tesla (Nasdaq: TSLA) expects to start selling the more affordable car by 2017, according to a  blog post on Tesla’s website






It doesn’t get specific on where in the Lone Star State the factory could be built. Other states being considered for the factory are New Mexico, Arizona and Nevada. A site will be selected soon and construction could start by the end of the year. It would be operational by 2017 and fully ramped up by 2020






The $4-billion to $5-billion factory will provide economies of scale for Tesla, allowing mass production of the batteries, which would then be shipped to Fremont, Calif. for final vehicle assembly






Tesla is looking for 500 to 1,000 acres for a facility up to 10 million square feet that would employ about 6,500 people






By 2020, the facility would produce enough batteries to power 500,000 cars. By comparison, Tesla sold more than 30,000 cars in 2013 and expects to sell 35,000 in 2014






In other words, the Gigafactory would produce more lithium ion batteries than are produced worldwide today






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