TSLA: Tesla Adds 3rd U.S. Site for Gigafactory

Plant production set to begin in 2017

   

TSLA: Tesla Adds 3rd U.S. Site for Gigafactory

Tesla (TSLA) is expanding its search to three sites for the location of a lithium-ion battery plant — dubbed a Gigafactory — in the United States.

Tesla185 TSLA: Tesla Adds 3rd U.S. Site for GigafactoryChief Executive Elon Musk said Tuesday that it is looking at an additional site (previously only two sites were mentioned) in the U.S. but that the final decision will not come until the end of the year.

“We’re probably going to do two or maybe three states all the way to creating a foundation and completing the plans and getting approval,” Musk told shareholders at the annual company meeting. “It might actually be three states we do it in.”

The plants will be selected from Arizona, Nevada, New Mexico, Texas and California.

The sites will be built up at the same time — with the date of 2017 to begin production.

Each of the plants are being built to produce batteries at higher volumes in the aim of lowering costs.

Currently, Tesla uses as a supplier partner Panasonic Corp.

The new plants are scheduled to come online in conjunction with a Tesla third-generation car, which Musk said would costs about $35,000 and be available in 2016.

After its Gen 3 car, Musk said Tesla will aim to produce electric trucks and reduce the $35,000 cost for more advanced vehicles.

In addition, Tesla noted that it was advancing its contract relationship with manufacturer Foxconn, in order to increase production.

TSLA stock is up 34% year to date.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/06/tsla-tesla-gigafactory/.

©2014 InvestorPlace Media, LLC

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