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Posts Tagged ‘Tesla gigafactory’

Tesla Inks Deal with California to Provide Energy Storage

Company expanding business model.

by on Sep.19, 2016

Tesla's building the largest lithium-ion storage project in the world, which is just a bit larger than this Powerwall unit.

Once again, a State of California directive works out to Tesla’s gain. The company best-known for its high-price electric vehicles was selected help solve the state’s power problem.

In 2013, the California Public Utilities Commission mandated that investor-owned utilities have a combined target of 1,325 megawatts of energy storage online by 2024. With that, in stepped Tesla Energy.

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The storage arm of Tesla has been selected to build what it calls the largest lithium-ion battery storage project in the world. It will hold enough electricity to power 2,500 households for a day or charge 1,000 of its vehicles, the company said on its blog. (more…)

Tesla Gigafactory Delay Complicating Tesla’s Worsening Financial Woes

Maker likely to blow through at least a third of its cash.

by on Aug.09, 2016

Tesla CEO Elon Musk.

Barely two weeks after Tesla Motors CEO Elon Musk led a tour of the company’s new Gigafactory, it turns out that battery plant is running both late and likely over budget – something that is expected to worsen an already troublesome financial situation for the battery-carmaker.

Intended to be the world’s largest lithium-ion plant, the Gigafactory is already set to begin partial operation, and Musk last week boasted of plans to eventually boost output far beyond the original plans. But Tesla now says it spent nearly $120 million to prep the facility during the first half of the year with costs for all of 2016 expected to balloon to $520 million.

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That’s one reason the carmaker’s cash reserves are fast on the decline. In fact, Tesla said it will have to lay out $1.1 billion, or about a third of its cash, during just the third quarter of this year. And with plenty of work left both on the Gigafactory and on the development of the Model 3 sedan, the financial pressures on the company are expected to grow more severe –especially in light of its unexpectedly sharp second-quarter loss.

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Musk Flings Open Doors of Tesla’s Gigafactory

Musk believes Model 3s coming in 2018.

by on Jul.27, 2016

Tesla's Elon Musk said recently that if the automaker reaches its production goal of 500,000 units, it would absorb all of the world's current lithium production. Credit: Tesla

Tesla flung open the doors of its still-in-progress Gigafactory to show the world what kind of progress it’s making on what will likely be the birthplace of every battery stuffed into every Tesla EV sold for years to come.

The company’s founder and CEO, Elon Musk, took the media on a tour of the plant, which is only 14% complete, and announced the facility would begin producing batteries at the end of this year. The first automotive power sources weren’t due to roll off the line, so to speak, until sometime in 2017. Tesla shareholders and owners will get a private tour later this week.

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The plant is already producing Tesla’s Powerwall and Powerpack energy storage units, using cells from Panasonic Corp. The Japanese company is a partner, investing $1.6 billion into the site, which is expected to cost $5 billion once it’s completed in 2020. (more…)

Volkswagen Contemplates Building a Gigafactory

New plant to supply burgeoning EV line-up.

by on May.31, 2016

Volkswagen officials show off the maker's new battery electric minivan concept, BUDD-e, earlier this year.

Since the scandal surrounding its diesel engines broke, Volkswagen has been pushing its electrification program to the fore to show its commitment to green technologies. Skeptics wondered how serious the maker was.

Apparently giga-serious.

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The company is contemplating building an $11 billion gigafactory of its own to churn out batteries for its electric vehicles, according to a report from Handlesblatt, a German publication. (more…)

Rising Lithium Prices Threaten to Short-Circuit EV Market

Tesla's projected top-end sales takes all of world's current lithium production.

by on Apr.18, 2016

Rising lithium prices, in part because of the locations of the mines, could crimp EV sales going forward.

The plunging price of petroleum isn’t the only thing threatening to derail demand for battery-based vehicles. At a time when most commodity prices – everything from oil to gold to copper – have been on the decline, traders continue to bid up the fundamental component of today’s electric vehicles: the lithium used in the most advanced batteries.

The raw material, lithium carbonate, more than doubled in price towards the end of last year, and the trend has continued upward, pushing to as much as $23,000 a ton in recent weeks. And that’s even before the battery-car market builds any real momentum.

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California-based Tesla Motors, for example, produced just 50,000 vehicles last year, but it hopes to start nudging towards 500,000 once its new Model 3 gets into production late in 2017. And as tough new global emissions and fuel economy mandates phase in, even mainstream manufacturers will be expanding their use of battery-based powertrains. (more…)

Musk Unwrapping Tesla Model 3 Next Spring

Mass-market model production can't start until Gigafactory up-and-running.

by on Sep.03, 2015

Tesla's Elon Musk tweeted recently that the Model X crossover will be slightly more expensive than the Model S sedan.

Any time Elon Musk starts tweeting, Tesla aficionados scramble to see if there’s news or even hints about what’s to come and in a recent string of tweets, he didn’t disappoint.

Musk, the company’s founder, took to social media to talk about both of the California-based EV maker’s anticipated vehicles: the Model 3 and Model X.

Industry News!

The Model 3, which is slated to be maker’s mass-market entry, is expected to transform Tesla from a money-losing, niche operation into a profitable, high-volume manufacturer, Musk previously laying out a goal of hitting sales of at least 500,000 vehicles annually by decade’s end, or 10 times what he expects in 2016. (more…)

Tesla Offering $500 Million in Stock Offering

EV maker plowing cash into product, Gigafactory development.

by on Aug.13, 2015

Tesla is looking to raise $500 million in capital for product and Gigafactory development.

Days after it reported another quarterly loss and a study shows it’s basically losing $4,000 on every Model S it sells, Tesla Motors is looking for investors to gobble up another $500 million in stock with the EV maker’s latest public offering.

Tesla said it “intends to use the net proceeds from this offering to accelerate the growth of its business in the United States and internationally, including the growth of its stores, service centers, Supercharger network and the Tesla Energy business, and for the development and production of Model 3, the development of the Tesla Gigafactory, and other general corporate purposes.”

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In the spirit of shared sacrifice, Tesla’s founder and CEO, Elon Musk, will buy the first $20 million, according to the automaker. Tesla intends to grant the underwriters a 30-day option to purchase up to $75 million of additional shares of common stock. (more…)

Nevada Set to Open “Electric Highway”

Project would support Tesla Gigafactory.

by on Jun.17, 2015

Nevada Gov. Brian Sandoval.

While it may be best known for its gambling industry, the State of Nevada has been making a push to take leadership in the future of the auto industry, as well.

The first state to officially license autonomous vehicles, and the home to the new Tesla Gigafactory battery plant, Gov. Brian Sandoval this week announced plans for the Nevada Electric Highway. The project will set up a network of charging stations on U.S. 95, the highway between Reno, where the Gigafactory is being built, and the gaming center of Las Vegas.

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“We’ve all driven this road before and have anxiety (just) getting gas,” said Sandoval. “Now we can have confidence to charge our electric vehicles and drive them from place to place.”

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Panasonic Aims to Help Tesla Launch Gigafactory

Japanese tech giant sending “100s” of workers to Nevada.

by on Jun.09, 2015

A rendering of the Tesla Gigafactory.

Tesla Motors will get a big helping hand from its Japanese tech partner Tesla in a push to get the planned Gigafactory battery plant into production next year.

Panasonic plans to send “hundreds” of its own employees to the Reno, Nevada plant site in an effort to help Tesla get it completed. The $5 billion Gigafactory is expected to become the world’s largest producer of lithium-ion batteries once it gets up to full speed, those batteries used not only for Tesla’s electric vehicles but also for backup energy systems and other applications.

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“We’ll need hundreds of people at the start,” Yoshio Ito, Panasonic’s automotive and industrial systems division chief said in Japan. “We should actually see that starting around the autumn.”

Panasonic, which has been supplying batteries for the Tesla Model S, is a major partner in the Gigafactory, with its own investment expected to approach $500 million.

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Tesla Loses Money in Q1, Model X Coming in Q3

Founder Musk says maker will meet 55,000-unit production target.

by on May.07, 2015

Tesla founder Elon Musk has reason to smile: the Model X is expected to hit the road in the third quarter.

Tesla founder Elon Musk offered up only optimism even as the company reported an adjusted $45 million loss, or 36 cents a share, during the company’s first-quarter earnings call.

While the company lost money, it’s adjusted revenue came in at $1.1 billion, which is the first time the company topped that number in a quarter. Tesla’s results were better than expected by analysts, which had a consensus estimate of $1.05 billion in adjusted revenue and an adjusted loss of 49 cents per share. Additionally, Tesla delivered 10,040 cars during the period – also a first.

Power Up!

“I’m feeling pretty good about things,” Musk said during a conference call with analysts. The maker expects to produce more than 12,000 vehicles this quarter. (more…)