Tesla to Directly Invest $2B Into Gigafactory
Tesla will directly invest $2 billion into its new Gigafactory while its partners will contribute another $2 to 3 billion to the project.
The Gigafactory is designed to reduce cell costs for the American automaker’s electric vehicles and will produce more lithium-ion batteries by 2020 than were produced worldwide in 2013. The new plant will also assist Tesla in reaching its goal of producing a mass market electric vehicle in three years, one that is expected to have at least an 180-mile range and cost around $30,000.
SEE ALSO: Tesla Gigafactory May Get $1B From Panasonic
The large-scale factory is expected to reduce the per kWh cost of Tesla’s battery packs by over 30 percent as Tesla aims for a lofty goal of producing 500,000 vehicles a year by 2020. The Gigafactory will add around 6,500 jobs with facility construction starting this year and aiming to be finished by 2015. The Gigafactory will then spend 2016 having its equipment installed before production launch begins in 2017.
Tesla also announced today that it will offer $1.6 billion in senior convertible notes to help fund the Gigafactory. In the past year, shares in the company have advanced more than sevenfold. In an announcement today, the California-based electric car maker said it will offer $800 million of notes due 2019 and $800 million due 2021.
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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