Elon Musk, the billionaire co-founder of electric start-up Tesla Motors has revealed the holy anticipated details concerning what he claims would become the world’s biggest battery factory.
Nicknamed with affection the “gigafactory”, according to its statement, Tesla’s planned factory would require a sizeable investment – somewhere between $4 and 5 billion, in the process creating around 6,500 new jobs in the US and with internal funds of around $2 billion.
“This has a huge impact beyond Tesla,” said Harley Shaiken, a labor economist at the University of California, Berkeley. “It gives enormous legitimacy to battery production and the future of the electric car because that lies in the battery. It’s high stakes, high technology.”
The Californian electric automaker also announced it plans to raise $1.6 billion from investors in a convertible bond – an amount that could eventually go up to $1.84 billion. The necessary money would be gathered by selling convertible senior notes, half of them due in 2019 and the other half in 2021.
“The factory is really there to support the volume of the third generation car,” said Musk. “We want to have the vehicle engineering and tooling come to fruition the same time as the “Gigafactory.” It is already part of one strategy, one combined effort.”
The ultimate goal of Tesla is to reach a 500,000 units car production which can only happen if the automaker slashes production costs, bolsters its vehicle line-up and offers more affordable cars – like a mass market sedan.
Via Reuters, Bloomberg