Panasonic has agreed to partner with Tesla on its Gigafactory battery-manufacturing facility, which will at some point assemble all battery packs for both the automaker’s lineup and its foray into electrical storage for residences and firms.
The Japanese electronics giant, which currently supplies the lithium-ion cells in the Model S, won’t commit to hauling its own gear to the U.S. just however, even so. Just as it does now at its factory in Fremont, California, Tesla will import Panasonic cells from Japan and assemble them into battery packs. This must take up half of the planned 10-million-square-foot Gigafactory facility, according to Tesla, with some further unnamed “key suppliers” taking up the other space. Tesla has currently committed about $ 2.3 billion to the estimated $ 5 billion price for the factory since the firm announced plans to construct it in March. So even though Panasonic is throwing down some yen, the Gigafactory likely demands a lot more funding just before Elon Musk’s organization starts construction.
In its second-quarter SEC filing, Tesla said it plans to pick a building web site inside “the subsequent handful of months” from amongst 5 possible locations—Reno, Nevada, being a top selection, along with web sites in Arizona, California, New Mexico, and Texas—and plans to have the factory completed prior to the Model 3 debuts in 2016 as a 2017 model. That higher-volume automobile, which will arrive after the Model X crossover’s 2015 rollout, is amongst the principal causes that the Gigafactory will exist. Tesla wants to reduce battery fees if it hopes to be able to sell the Model 3 for its target starting cost of $ 35,000, and the Palo Alto company also hopes to grow to be a major supplier to other automakers or even to consumer-electronics firms such as Apple.
We’re slightly bearish on the Gigafactory upending the entire battery enterprise so swiftly, particularly provided Tesla’s consistent economic losses (it lost $ 62 million in the second quarter). Nonetheless, in spite of earning a “junk” credit rating in Could, Tesla is upgrading its Fremont assembly line, is opening new retailers in China, is adding but much more totally free Supercharger stations, and says it is “on track” to provide the gullwinged Model X early next year. If everything goes to strategy, 6500 individuals will discover steady employment at the Gigafactory and Tesla will churn out 500,000 cars per year by 2020—and Tesla’s most zealous owners just may possibly form a religion.
Tesla, Panasonic Sign Deal for Epic Gigafactory Battery Plant Slated to Open Before 2017
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