Tesla Motors, the luxury electric vehicle manufacturer, recently released its financial status for the first quarter – but more importantly for prospective investors might be the associated news surrounding its upcoming Gigafactory.
The battery production facility – dubbed the Gigafactory because it will be the largest battery production plant in the world upon completion – is being under construction in Sparks, Nevada and its production will cater for Tesla’s automotive and stationary storage businesses. Led by billionaire entrepreneur and co-founder Elon Musk, the electric car manufacturer announced the production facility is forecasted to start churning out cells, modules and completed packs in 2016. More importantly – besides the fact that its build is on schedule – is the fact that the company is already mulling an expansion worth around 50 percent of initial capacity to cater for the “staggering” interest for the residential battery modules that can provide backup power. The intended battery factory scale should yield cost reductions of around 30 percent for the batteries to be used in both autos and the new storage products.
The automaker said it was on pace to meet the 55,000 units delivery record for the year, aided by the upcoming introduction of the Model X crossover sometimes in the latter part of the third quarter. Last week, Tesla also unveiled a new business direction – the production of stationary battery packs for residential, commercial and utility usage. Musk also said the company’s automotive plans now call for an unveiling of the third model – the Model 3 sedan – in March 2016 with production and delivery scheduled for late 2017 at the price of $35,000.