Tesla Gigafactory Announcement: 5 Fast Facts You Need to Know

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Tesla’s Elon Musk (pictured above) has the tech world very excited for the launch of the company’s “Gigafactory.” What is this Tesla Gigafactory Musk has been teasing all week? Here’s what we know so far.

1. What Tesla Gigafactory Will Produce

The Bloomberg video above is a great primer on the Tesla Gigafactory.

Bascially, the Tesla Gigafactory is set to radically transform the battery industry. Money Morning notes that, “In November, Musk hinted that the factory could equal the output capacity of every lithium ion battery plant in the world, combined.”

Better lithium batteries could have a big impact on the electric car industry, the tech sector, and everyday appliances. By improving batteries and making them more efficient, the Gigafactory could also lower the purchase price of many expensive battery-powered products, including Tesla’s own line of electric cars.

If you want to learn more, you can read Tesla’s official blog on the Gigafactory for more info.

2. Gigafactory Will Provide Batteries for Half a Million Cars by 2020

The official announcement has been made by Tesla, and it’s got everybody talking. Forbes reports that Tesla plans to ramp up battery production to provide power for 500,000 vehicles by 2020. Forbes adds that the factory will be huge, as big as 10-million square-feet.

The Verge notes that the factory itself will be built by 2017.

MarketWatch is reporting some exciting numbers about the Gigafactory. The report says that Tesla’s Gigafactory will likely employ 6,500 people. The factory is likely to cost $5 billion.

3. Gigafactory Expected to Boost Tesla Stocks

ABC News reports that the Gigafactory news is prompting Wall Street analysts to increase the expected price of Tesla shares. Now might be a good time to buy shares in the company.

ABC News notes that “Tesla shares are up about 70 percent so far this year and are worth more than seven times what they were at the end of 2012.”

4. Panasonic Is a Likely Gigafactory Partner

GigaOM is reporting that Panasonic might provide the Gigafactory with $1 billion. Sanyo might also be ponying up a similar amount of cash to help fund this high-tech battery factory, which may be built in New Mexico. However, other states including California, Arizona, and Texas have been cited as the possible home of the Gigafactory.

5. Solar Tech Is Also a Part of Tesla’s Battery Strategy

Forbes reports that solar energy is also a part of Musk’s long-term plans.

Forbes wrote:

“Tesla has already been running trials with SolarCity, which is run by Musk’s cousin Lyndon Rive, on a storage unit. What it does is hold onto some excess power generated by the panels on the roof of a home or business rather than immediately sending it to the grid.

In the short run, this has the potential to solve a very big problem that’s headed California’s way brought on by the success of solar in the state. It’s something called “the duck graph” and what it shows is what happens when the sun starts to set and people head home from work.

The result is a big mess where net demand for electricity spikes to the highest levels of the day all in the space of one hour. California is so concerned it has mandated significant energy storage be brought online to reel in the length of the duck’s neck before it gets too long.”

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