Tesla Motors, Inc. plans to build a $5 Billion battery factory that could shake up the industry and start a bidding war for states that want the 6,500 new jobs it will bring.
Tesla has begun to call this project the “gigafactory” and it would give Musk a major player in U.S. manufacturing and electric power.
Musk said the plant is key to Tesla becoming a mass-market automaker capable of producing 500,000 or more electric vehicles a year. The company’s current cheapest model, the Model S, starts at $71,000.
The new factory would be so revolutionary, that it would lower the price of lithium batteries by 30%. This is just the beginning of the electric vehicle takeover.
A slide-show on the Tesla Motors website includes a rendering of the facility in a desert landscape, with adjacent solar and wind farms to supply electricity. Construction could begin as early as this year, according to the presentation.
Tesla stock has been skyrocking as of late, and has risen from $210 up to $261.27 this week. Tesla announced the fundraising and plans for the gigafactory after the shares closed at their highest since the company’s IPO in June 2010. They’ve gone up sevenfold in the past year.
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