Watch To Find Out Why Tesla Gigafactory Is The Key To Tesla’s Future

DEC 1 2018 BY MARK KANE 8

Tesla invested in high-volume production first.

The Verge recently had the opportunity to visit the Tesla Gigafactory in Nevada, which currently is 30% complete.

The video presents the huge plant, which is the biggest site for automotive lithium-ion battery production in the world, as well as to talk about production bottlenecks, over-automation and future potential.

Elon Musk was right to announce the biggest battery investment in the world several years ago. The bold goal, combined with quick implementation, enabled it to become the biggest electric car maker and put the Model 3 in first place in terms of sales. Others only now see how to do it right and are starting to build new capacity.

“Elon Musk’s Gigafactory is arguably the most important thing that Tesla makes. The 1.9 million-square-foot factory in Sparks, Nevada, is only 30 percent complete, but it’s already on track to make 60 percent of the world’s lithium ion batteries — and Tesla plans to build more Gigafactories around the world. The Verge took a look inside.”

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8 Comments on "Watch To Find Out Why Tesla Gigafactory Is The Key To Tesla’s Future"

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John

I’m actually impressed how in a six minute video I now know less than I did before I watched it

Another Euro point of view

Your comment got me curious so I watched it, Yes a completely hollow video made to fill hollow time of hollow people.

Get Real

Well than you fit fit right in /s.

robus

I do wish Tesla’s in house team would do some deep dives into the factories. Now that GF2 is ramping up it would be great to see a video showing the production line.

Charlie Curcija

It was fine presentation and very informative. What did you expect? Them to reveal their trade secrets in 6 min video?

Jason
@John, I was happy to read your hallow opinion. I had not known that Gigafactory 1 is modular and still not fully built out. It’s actually a prudent way of bootstrapping a company’s limited capital for Capex needs. When I was getting my MBA degree at NYU, my Operations professor was also a restaurant consultant and gave examples of why start-up restaurants mostly fail: Too much of capital was sunk in the new restaurant. It was not uncommon for naive individuals to lose hundreds of thousands to millions in a new restaurant. A new restaurant has too much capacity (seats) when it opens and needs to expand capacity (e.g. add seats) as the business grows. So growth is a challenge. John, if you studied how company expanded their manufacturing plants, they generally start a new plant. I never read about an actual case (e.g. case study) of a plant adding modules as it expands. Here’s the Gigafactory economics: Get an anchor tenant such as Panasonic to secure cash flow (and if I’m not mistaken Panasonic also provided capital for Gigafactory 1) and expand factory in piecemeal basis as Tesla business picks up over time, respectively. The best part is Tesla… Read more »
Pushmi-Pullyu

Thanks for that interesting and thoughtful analysis.

And yes, Panasonic is providing part of the capital investment to construct Gigafactory 1. Not the building itself, but the production equipment inside.

Dusty Rhoades

We live in Reno and would love to have our club be able to get a tour of the factory. Could someone post a contact name and number or email address to contact regarding setting up an appointment for a tour of the factory? Thank you!