Officials said the foundation of the factory is already under construction. They also have made good progress toward the first cell production by 2016. Now, the plan is to accelerate the pace of construction through the rest of 2014.
That’s a promising sign for investors who have been waiting for construction to commence.
Initially, Tesla announced that the plant would be operational by 2017. The goal is to reach maximum output capacity by 2020. At that point, the Gigafactory will supply power for more than 500,000 vehicles annually.
Today’s update on the Tesla Gigafactory stretches far past the short-term performance of TSLA stock. In fact, it’s one of the biggest long-term catalysts for shareholders.
“The announced plans for what Tesla is calling a Gigafactory mean that the company is pouring resources into slashing battery costs like never before,” Money Morning‘s Chief Investment Strategist Keith Fitz-Gerald said. “This 10 million square-foot factory will have a price tag of $5 billion… hefty, you might say, for a company whose earnings were less than half that in 2013.
“But the juice is worth the squeeze,” said Fitz-Gerald. “That’s because the Gigafactory will be a pioneer in mass production of cost-effective and high-quality battery packs that will give Tesla an even deeper competitive edge over its competitors going forward. It’s going to be the largest lithium-ion battery manufacturing plant in the world.”
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