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Tesla’s mission is to accelerate the world’s transition to sustainable energy. To achieve that goal, we must produce electric vehicles in sufficient volume to force change in the automobile industry. With a planned production rate of 500,000 cars per year in the latter half of this decade, Tesla alone will require today’s entire worldwide production of lithium ion batteries. The Tesla Gigafactory was born of necessity and will supply enough batteries to support our projected vehicle demand.
Tesla broke ground on the Gigafactory in June 2014 outside Sparks, Nevada, and we expect to begin battery cell production by the end of this year. By 2018, the Gigafactory will reach full capacity and produce more lithium ion batteries annually than were produced worldwide in 2013.
In cooperation with Panasonic and other strategic partners, the Gigafactory will produce batteries for significantly less cost using economies of scale, innovative manufacturing, reduction of waste, and the simple optimization of locating most manufacturing process under one roof. We expect to drive down the per kilowatt hour (kWh) cost of our battery pack by more than 30 percent. The Gigafactory will also be powered by renewable energy sources, with the goal of achieving net zero energy.
The name Gigafactory comes from the factory’s planned annual battery production capacity of 35 gigawatt-hours (GWh). “Giga” is a unit of measurement that represents “billions”. One GWh is the equivalent of generating (or consuming) one billion watts for one hour—one million times that of one kWh.
Gigafactory Projected Figures
2020 Gigafactory Cell Output 35 GWh/yr
2020 Gigafactory Pack Output 50 GWh/yr
Up to 10M ft2
w/ 1-2 levels
Total Land Area (acres) 500-1000
Solar and Wind
Gigafactory Location Finalists
Finished battery packs from the Gigafactory to Fremont, CA for vehicle assembly.
Final site selection activities are underway.
Design / Build
Production Launch and
Tesla and its partners will invest ≈$4-5 billion in the Gigafactory through 2020.
CapEx will be shared by Gigafactory partners.
Tesla will directly invest ≈$2 billion.
Gigafactory Projected Timeline
Forward Looking Statements
Certain statements in this communication, including statements regarding the Tesla
Gigafactory and its development plans, production capacity, cost savings, costs, timeline and
vehicle production estimates, are “forward-looking statements” that are subject to risks
and uncertainties. These forward-looking statements are based on management’s current
expectations, and as a result of certain risks and uncertainties, actual events or results may
differ materially from those contained in the forward-looking statements. Various
important factors could cause actual results to differ materially from those in the forward-
looking statements, including potential difﬁculties in ﬁnding a suitable Tesla Gigafactory site,
obtaining required permits, negotiating terms with technology and other partners,
maintaining implementation schedules, output and cost estimates and vehicle demand.
Please refer to Tesla’s most recent Annual Report on Form 10-K and its other ﬁlings with
the Securities and Exchange Commission. These ﬁlings contain and identify important
factors that could cause actual results to differ materially from those contained in Tesla’s
forward-looking statements.Tesla disclaims any obligation to update information contained
in these forward-looking statements.