Boston, MA 02/28/2014 (wallstreetpr) – Tesla Motors Inc. (NASDAQ:TSLA) next big project is the building of the so called world largest Lithium-ion battery factory that is expected to cost the Electric automaker a whopping $5 Billion. The Gigafactory once complete is expected to shake the power industry and employ not less than 6500 personnel. The luxury electric car maker plans to finance part of the amount of the project, by issuing at least $1.6 billion of its convertible senior notes.
Why Nevada might be the site location
Tesla Motors Inc. (NASDAQ:TSLA) is currently exploring locations for the mega project with possible locations in mind being Nevada, Arizona and New Mexico. Some analysts are of the opinion Nevada might have an upper hand as the favorite site for the Gigafactory. Nevada is currently the closest location to the current headquarters of Freemont, Calif.
Nevada commands a good rail system that will be beneficial to the project and also boosts of Lithium reserves in Wyoming. Nevada is also expected to offer a huge amount of tax incentives as the project is expected to create massive job opportunities for the state.
Impact of the Gigafactory
The plant once complete is expected to have more capacity than any other lithium-ion battery company in the US, something that should be a major boost to the electric automaker as it strives to gain a huge market share from the big market players such as Ford Motor Co. (NYSE:F) and General Motors Company (NYSE:GM).
The Gigafactory is expected to have a major impact in the future manufacture of electric vehicles which are on the rise in the US and across Asia. Tesla plans to invest between $4 and $5 billion to achieve full completion of the project with the company anticipating the growth of its convertible bonding to $1.84 billion.
Tesla Motors Inc. (NASDAQ:TSLA) expects the Gigafactory to help propel its prospects of being able to produce up to 500,000 electric vehicles annually from the current 35,000, according to the company’s chief executive officer Musk. The US market is currently turning to batteries and solar panels as a way of saving on electric power bills something that should be beneficial to the company once the project is complete.
Tesla Motors Inc. (NASDAQ:TSLA) expects the level of production in the Gigafactory to be immense, sufficient enough to reduce costs of producing Lithium-ion batteries by at least 30%.
