If Tesla wants to go forward with its plans to produce a mass-market car, the company's going to have to expand. And nothing says expansion like a $5 billion, 10 million-square-foot battery factory. Now Tesla just needs to figure out the $5 billion part.
The electric car manufacturer said it will chip in $2 billion of its own money and raise another $1.6 billion through a bond issue. Whoever accounts for the rest of the money should get a significant return, considering the factory would allow Tesla to sell as many as 500,000 cars a year. Production should begin in 2017 and reach its full potential three years later.
Another benefit is that the ginormous factory would allow Tesla to produce lithium-ion batteries for much cheaper, a necessary caveat for the Model E. It's estimated that Tesla is currently producing batteries for $400 per kilowatt-hour. Tesla's goal is to get that figure down to $200.
If you're worried about how much energy the plant would eat up, chill out, bruh. Elon Musk says he plans on using renewable energy. The factory will also add jobs to American economy, as Tesla is looking to stay in the United States.
[via Wall Street Journal]