Without the facility, no battery manufacturer has the capability to produce the amount of lithium-ion batteries needed for the mass production of the company's Model 3 vehicle. The "2170" cell will serve the same goal as the versatile "18650" batteries that can be found in the Model S and Model X. Each cell is slightly longer and with a larger diameter, helping achieve a higher energy density and lower production costs. The batteries will be used in Tesla's Powerwall system for homes (see photo above), its Powerpack business system, and eventually, batteries for its promised Model 3 vehicles. Tesla says by 2018, it will be manufacturing 35 gigawatt-hours of batteries, almost as much as the rest of the entire world's battery production combined. Production of the 2170 for qualification, which is to say for testing and quality assurance purposes ahead of mass production, started in December.
Tesla also expects the Gigafactory, located near Reno, Nev., to be a boon for the region.
The news has some experts questioning if Tesla can come through on its pledge to make 500,000 cars per year by 2018.
According to a report by Electrek, the automaker has revealed new aerial pictures of its Gigafactory which shows that it is building the factory at a rapid pace to ensure its timely completion. It cited missed shipping cut-offs and also production challenges caused by the shift to Tesla HW2 sensor packages in Model X and S vehicles, which changes the sensor and on-board computing load out to pave the way for eventual introduction of full self-driving features.
Sources: Bloomberg and Tesla IR site.
Bills, Jets meet while facing offseasons of uncertainty
With both the Jets and the Bills playing their ultimate game of the season, many fans are questioning about April's draft order. He let it bounce into the end zone, perhaps thinking it was a punt or something, and the Jets fell on it for an easy touchdown.
Producing the batteries at the Gigafactory will bring down costs, enabling the company to price its Model 3 at about $35,000.
The high performance cylindrical cells have been jointly developed by Tesla and Panasonic; the product is aimed to provide best performance with lowest production cost for both electric vehicles (EVs) and storage products. In November, shareholders voted to approve Tesla's $2.23 billion bid to buy SolarCity, the solar panel producer run by Musk's cousins.
But Musk's bold visions haven't always been well received by analysts and investors.
That's despite Tesla's disclosure late Tuesday that production problems caused it to miss fourth-quarter and year-end estimates on auto deliveries.