Tesla Motors Inc. (NASDAQ:TSLA) is building a huge battery factory in Reno, Nevada. The company intends to use the factory for the manufacture of batteries, beginning as early as 2016.
With the appeal for electric cars on the rise, Tesla is looking to cash in on the growing opportunities. In the past, Tesla has not expanded its production capacity because the demand for electric cars had not yet picked up momentum.
With the introduction of their flagship vehicles, the Tesla Model S, and Model X, the motor company has plans to continue with mass production. The new firm will come very much in handy for Tesla Motors in the efforts to reduce the costs of the batteries and the cost of production as well.
Tesla Motors Inc. (NASDAQ:TSLA) is making plans to add a third wheel to its flagship cars with the introduction of the Model 3. The model 3’s launch is projected to take place in 2017, as soon as the company can achieve large-scale production of its batteries. The Tesla Model 3 will be less expensive, so its sales are expected to be higher, thus the need for mass production of batteries.
Tesla expects the mega factory to produce 35 gigawatt hours each year worth of battery cells by the year 2020. An additional output of about 50 gigawatt hours per year is expected. The current production of lithium-ion batteries has not reached that capacity. This shows how massive the Tesla battery production scale is, especially, with such a tall order. The expectations are quite high.
The automobile company has additional plans that involve venturing beyond the motor industry. The company plans to use the large factory to make its way into the power grid energy storage market. This is a very audacious move but nonetheless it is a wise strategy, which stands to bring great revenues to the company.
Additionally, there are plans to introduce a home battery, which will be a great source of alternative electric power for homes and businesses.