Tesla Gigafactory Has Drawn “Tremendous Interest From Potential Partners”

MAY 11 2014 BY ERIC LOVEDAY 11

Tesla's Planned Giga Factory

Tesla’s Planned Giga Factory

Giga Factory Graphic

Giga Factory Graphic

Tesla Motors has now gone on record with a statement related to partners who have shown potential interest in the Tesla battery giga factory:

“We are gratified by the level of enthusiasm our plans for the Gigafactory have generated from suppliers throughout the battery industry.  Since our announcement in late February, there has been tremendous interest from potential partners in collaborating on all aspects of the project. This has led us to take additional time to evaluate new inquiries along with our ongoing partnership discussions.”

We don’t expect Tesla to reveal the giga factory partners until the deal is final, but at least we now know for certain that there are potential partners (not just one partner) interested in being part of the giga factory.  And yes, Panasonic and Tesla do have a signed Letter Of Intent on the giga factory, but that’s non-binding.

As Quartz states:

The announcement of the first partner for the factory will be a “watershed moment” for Tesla, Morgan Stanley analysts say, and not just because any partner will be expected contribute a large portion of the $5 billion needed to fund it.

“For an established cell player to commit here implies they were sufficiently convinced by the calculations of Tesla’s engineers to open up its own supply chain, cooperate with rivals and change their place in the industry,” Morgan Stanley wrote. “In our view, such an announcement would represent giga-validation.”

How long will it be before the giga factory gets giga validation?  Any guesses?

Source: Quartz

Categories: Tesla

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11 Comments on "Tesla Gigafactory Has Drawn “Tremendous Interest From Potential Partners”"

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It will be a great day when they put the shovel in the ground and actually start building the factory.

It will be a huge day for EV’s and the day that hopefully the rest of the manufacturers realise that they might haveto have their own factories too soon.

My guess is at this point that Elon should have started with a pilot plant.

Dr. Kenneth Noisewater

That’s kind of the point of partnering though, isn’t it? Use some other firm’s experience as your “pilot plant”, thus saving time and money. The faster Tesla moves, the further ahead of the rest of the industry it gets, and the better and cheaper their cars get.

Producing batteries is not really something new. It is routine, so there is no need to do a pilot plant.

Just as mass producing cars is routine and Tesla built the final production line rightaway, without first wasting money on a pilot plant.

Should be very soon. All indications are that they are in a race to get Gen III (the Auto formerly known as Model E) to market. They have set a schedule for the Gigaplant and pretty much need to stick to it which means breaking ground this summer, I believe.

Depending who the “ineterested” partners are it may be possible that Tesla actually moves forward with both sites they say they will breaking ground on. One may follow a more agressive buildout schedule but 500k capacity could very well not be enough by 2020. If nothing else, Mr. Musk likes to think big and make big splashes.

Two plants starts to make much more sense…

How long before the “giga” prefix gets giga-old?
🙂

I think we are already there…

Ace Ventura: [to Ouda] I couldn’t help but notice that “equinsu ocha” part. Did you just refer to me as “white devil”?

Ouda: This is how they know you.

they will get giga validation when they explain how chemistry flexible this production will be and that in 5-15 years they will be able to produce cheapest or at least price competitive batteries regardless of any new batteries technology. For company like Tesla 5 billions is lots of money and you depreciate it at least 10-15 years.

I would think that increasing the number of partners increases the likelihood that the gigafactory will be able to quickly make adjustments as time changes.

Stop the talking. Build the freaking plant already.