/ Industry, News, Technology, Tesla / US: Tesla’s planned battery factory – a new source of revenue?

US: Tesla’s planned battery factory – a new source of revenue?

Linked In Share
US: Tesla’s planned battery factory – a new source of revenue?

While start-up electric carmaker Tesla has become Americas investor sweetheart, its planned battery “gigafactory” could definitely be seen as overkill. But it’s maybe another bold strategy from business wonder CEO Elon Musk.

Although Tesla is planning to ramp up production of its most successful product – the Model S sedan to 35,000 units this year – the number is still on the low side, especially if you plan to have a big batter factory. Even if its development eventually leads to the introduction of the Model X crossover (which, by the way, is held back in development “hell”) and the forecast entry-level sedan, is it worth the pain of such a massive investment?

Still, Tesla sees the batter factory – called internally a “gigafactory” because of its intended output – as a core element to its growth strategy. It would allow it to have access to a steady supply – it’s Panasonic partner had trouble supplying the necessary battery packs to Tesla. That’s because the Californian car company uses a different battery structure – closer to that used in consumer electronic appliances.

Musk is, among others, the chairman of SolarCity, a company that announced plans to sell future Tesla battery packs to local authorities and communities as emergency power sources. So, we have the hint at a future revenue source for the company – selling its batteries to others, even competing carmakers.

Still, up until now details are scarce, as Musk hasn’t announced the partner Tesla would be teaming up with – though he said “there’d be more than one partner in the plant,” with Panasonic among them a safe bet. Also, the location is unknown, but again Musk said the plant would be “heavily powered by renewables, wind and solar,” which could hint to a US desert location.

by Aurel Niculescu (my Google+) - Tuesday, February 25th, 2014 - filed under Industry, News, Technology, Tesla. Image credit: .
Linked In Share
Related Articles
battery factory Tesla us


Discuss: US: Tesla’s planned battery factory – a new source of revenue?

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

2016 Lexus RX spied
2016 Lexus RX spiedOur spy photographers have managed to capture on camera the new generation of the Lexus RS, which was being tested out on public ...
BMW i8 – new key fob with touchscreen display unveiled at CES
BMW i8 – new key fob with touchscreen display unveiled at CESA new key fob for the BMW i8 sports car has been unveiled recently by the company at the 2015 CES. Besides introducing the M4 ...
[VIDEO] 2016 Chevrolet Camaro rendered animation
[VIDEO] 2016 Chevrolet Camaro rendered animationA rendered animation of the Chevrolet Camaro’s new generation is showing us how the model may look like once it will be ready ...
[VIDEO] Three Land Rover Defender special editions introduced
[VIDEO] Three Land Rover Defender special editions introducedLand Rover has introduced a trio of final special editions of the legendary Defender, which will be leaving the production line ...
Exclusive: Chevy confirms Volt reveal for NAIAS
Exclusive: Chevy confirms Volt reveal for NAIASChevrolet has officially confirmed the world debut of the new Volt generation at the 2015 NAIAS, in Detroit, later on this ...
Europe: 2014 UK new car registrations the best in a decade
Europe: 2014 UK new car registrations the best in a decadeBritish new car sales managed to reach their best evolution since 2014, managing to highlight the country as one of the few ...
[VIDEO] Audi Prologue Piloted Driving Concept makes video debut
[VIDEO] Audi Prologue Piloted Driving Concept makes video debutThe first official video with the Audi Prologue Piloted Driving Concept has been released and it is a good exercise to find out ...
[VIDEO] Dodge Challenger SRT Hellcat vs. F16 Fighter Jet
[VIDEO] Dodge Challenger SRT Hellcat vs. F16 Fighter JetAn epic race between the impressive Dodge Challenger SRT Hellcat and the F16 Fighter Jet has been put together recently. We all ...
Infiniti Q60 Concept gets revealed in even more images
Infiniti Q60 Concept gets revealed in even more imagesA new series of images with the Infiniti Q60 Concept has been released by the car manufacturer, revealing the model in even more ...
Mercedes-Benz to move US headquarters from New Jersey to Atlanta
Mercedes-Benz to move US headquarters from New Jersey to AtlantaDaimler AG’s Mercedes-Benz, the world’s third largest luxury automaker, has announced its intention to move the regional US ...
[VIDEO] Audi R8 Plus, Ferrari F12 Berlinetta and Porsche 918 Spyder in the mountains
[VIDEO] Audi R8 Plus, Ferrari F12 Berlinetta and Porsche 918 Spyder in the mountainsA video revealing an Audi R8 Plus chasing a Ferrari F12 Berlinetta and a Porsche 918 Spyder on a mountain pass has popped onto ...
US: average fuel economy drops to 25.1 mpg in December
US: average fuel economy drops to 25.1 mpg in DecemberThanks to plunging gasoline prices, in some states averaging below $2 a gallon these days, US consumers have spurred demand for ...
Google exec buys yellow Ferrari LaFerrari
Google exec buys yellow Ferrari LaFerrariGoogle executive Benjamin Sloss has recently taken delivery of his brand new ride, a Ferrari LaFerrari finished in a yellow shade ...
Automakers wait news about 1,400 cars stranded on beached ship
Automakers wait news about 1,400 cars stranded on beached shipJaguar Land Rover announced that it was eagerly awaiting news about a shipment of 1,200 cars that were transported by a ...
[VIDEO] BMW i3 Concept demonstrates self-parking and collision avoidance systems
[VIDEO] BMW i3 Concept demonstrates self-parking and collision avoidance systemsBMW has taken the wraps off the i3 special concept during the 2015 Consumer Electronics Show, in Las Vegas, as the model has ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Spy-Shots of Cars
bmw i8 key fob display 1
Land Rover Defender final special editions 1
Infiniti-Q60-Pics1
benjamin sloss ferrari la ferrari yellow 1
bmw i3 special concept ces 1
Renault Alpine Vision Gran Turismo 1
Ariel Nomad 1
Volkswagen Connected Golf Concept 1
2016 Lexus GS F 1
Audi Prologue Piloted Driving Concept 1
Infiniti Q60 Concept 1

More automotive from inautonews
Our spy photographers have managed to capture on camera the new generation of the Lexus RS, which was being tested out on public roads. The best selling mid-sized luxury SUV on the U.S. market, the Lexus RX, is getting ready to receive yet another generation, which will have to tough job of being ...
read more
Inautonews Editors Section
US and Japanese brands line up for Detroit’s NAIAS
US and Japanese brands line up for Detroit’s NAIASYesterday we discussed a little bit about the novelties that European – and especially German – brands have to offer during the first big auto ...
US: 2015 comes with numerous auto expectations
US: 2015 comes with numerous auto expectationsThe year 2014 has been retired, with numerous good news and maybe even more bad news. So, let’s take a look at what we reckon is in store for the ...
2015 Ford Mondeo arrives in Romania – short test drive inside
2015 Ford Mondeo arrives in Romania – short test drive insideFord Romania has introduced the fifth generation of the Mondeo in Europe, over a 2-day event which has gotten us, automotive journalists, through all ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety New NHTSA boss warns recalls might surpass 2014 recordAccording to Mark Rosekind, the new boss of the US National Highway Traffic Safety Administration, ... Recall roundup: GM SUVs for ignition switch issueGeneral Motors hasn’t gotten over the ignition switch issue and had to announce yet another ...
Safety Section