Construction Costs Now Exceed $62 Million At Tesla Gigafactory

APR 20 2015 BY MIKE ANTHONY 15

Tesla Gigafactory Rendering

Tesla Gigafactory Rendering.

So far, spending on Tesla’s Reno, Nevada-based Gigafactory has exceeded $62 million in construction costs. (Gigafactory info here)

Tesla Gigafactory - Image Via Steve Jurvetson

Tesla Gigafactory – Image Via Steve Jurvetson

A couple of additions surely added to the overall cost:

  • Structural steel modification. ($2.1 million)
  • A 1.5 million gallon water tank & misc. concrete work. ($1.5 million)
  • Mass grading in three areas (~$6 million)

It appears that there have been rumors of delays & cutbacks at the Gigafactory. However Tesla Motors CEO, Elon Musk, recently tweeted:

“There is no slowdown of the Gigafactory construction underway, as anyone near Reno with eyes can verify. It’s not subtle.”

We don’t believe those rumors, but are keen to hear an official announcement from Tesla on the status of the Gigafactory.  Hopefully Tesla will provide a detailed status update during its Q1 2015 conference call.

Further details on the Gigafactory in the video below:

Mr. Cool (AKA - Elon Musk) Gazing At Tesla Gigafactory - Image Via Steve Jurvetson

Mr. Cool (AKA – Elon Musk) Gazing At Tesla Gigafactory – Image Via Steve Jurvetson

Source: Reno Gazette-Journal

Categories: Tesla

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15 Comments on "Construction Costs Now Exceed $62 Million At Tesla Gigafactory"

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$62 million… that’s barely more than 1% of the estimated total cost of $5 billion of the Gigafactory. But the cost of the building’s structure won’t be that much, when compared to the cost of all the manufacturing machinery and equipment to be installed inside!

Indeed–five billion dollars could buy you 2,500 hydrogen filling stations instead, for example. 10,000 at bulk pricing. Now that’s a network.

But… that would just be silly!!?

Or half a million DC Fast chargers at $10K each. That would be 5 for every gas station in the US (about 100K).

I remember campaigning for Seattle’s Safeco Field, our retractable-roofed MLB stadium – home of the Mariners baseball club. The public was astounded that such a stadium could cost $500,000,000 dollars. Next, came Century-Link Field, home of the Seattle Seahawks NFL franchise. Billionaire Paul Allen wanted tons of public funding to complete the $500,000,000 football and soccer venue. En-total, when finished, Seattle had one billion dollars worth of sports stadiums one next to the other. This cost was considered close to the public-private stadiums Kansas City had approved a decade earlier.

Today, the owner of the Dallas Cowboys spends one billion dollars on a football stadium and nobody cares. The San Francisco 49’rs just completed Levi’s stadium for 1.4 billion and nobody blushed.

A headline stating Tesla has already spent $69 million dollars on it’s Gigafactory seems like pocket change so far – especially for a factory that brings so much prosperity to a very depressed region of our nation.

So far, a two-floor warehouse facility. Needs to take shape further to look like something beyond storage space.

This Jurvetson guy and Musk’s family member sitting on Tesla board are trying real hard to pump up the stock! Every few days, new pictures posted on twitter to keep the fandoys fascinated.

At the end, it could be the shape of this factory that will put Tesla in the same league and valuation as Apple.

Oh, drat! You’re still here trolling as usual, See Through?

Poor “See Through”. Gotta feel sorry for the troll. It must be -so- frustrating trying to keep on being a Tesla basher these days. So hard to convince anyone that Tesla is “just pretending” to be selling more cars year after year, or to convince anyone that Tesla is about to go bankrupt, when the company is very publicly building a huge new manufacturing facility!

GO TESLA!

I believe that huge new manufacturing facility is one of the reasons it could go bust.

Get out of bed much?

…and not building it carried similar risk with much less upside. Tesla needs to scale and battery cells are the most important component not in their control.

Well, I certainly agree that the Gigafactory is a huge gamble for Tesla. On the other hand, their choices were to either remain a relatively small niche luxury car maker, or to “bet the farm” just like they have before, to gamble the future of the company on a new venture, as they did with the Roadster and the Model S.

Kudos to Tesla and to Elon Musk for pursuing Tesla Motor’s original vision, staying true to the original “mission statement”, and for being willing to put their money where their mouth is — repeatedly!

Well, I for one, am fascinated. So would any half-intelegent person. It will be one of the biggest factories under one roof in the world when complete – and substantially renewably powered too? That must be a first for its size. Oh… and I’m also a Tesla/Musk fan-boy. MW

Actually news about dissent in workforce is nothing strange. Big build site -> lots of workforce -> lots of smaller and bigger arguments.

Speed of build out is separate thing. Not that hard issue to fix if its related to workforce bottleneck too.

GO TESLA GO