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Tesla to officially open its Gigafactory on the 29th of July

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Tesla’a Model S and Model 3 are a very important part of the company’s push to make sustainable transport available to the world — and turn positive in cashflow. And Tesla’s Nevada based Gigafactory will play a key role in ensuring that Tesla’s ambitious plans will have enough batteries to power them.

Well, the company has announced the official opening ceremony of the partially operational plant, from July 29th.

Tesla has been making a push to introduce elecric cars to the main roads. The company received fresh impetus in recent days, when its Model 3 and S were very well received — and pre booked — by the public. The company is planning to produce almost 500,000 cars every year for the latter part of this decade to fulfil the projected demand and to infuse enough electric cars into the system to make them an almost mainstream feature.

However, doing this requires the company to overcome a lot of challenges first, including the issue of providing Lithium ion batteries to these cars.

As per the Tesla website,

With a planned production rate of 500,000 cars per year in the latter half of this decade, Tesla alone will require today’s entire worldwide production of lithium ion batteries.

Hence the Gigafactory. The company hopes that not only will the Nevada based factory will be able to supply all of Tesla’s planned 500,000 cars with batteries — a feat in itself — but will also produce more lithium ion batteries annually than were produced worldwide in 2013, after it reaches full capacity in 2020.

The factory will deploy over 6000 people and is expected to drive down the per kilowatt hour (kWh) cost of battery pack by more than 30 percent. The Gigafactory will also be powered by renewable energy sources, with the goal of achieving net zero energy at optimum operation.

The factory is expected to cost Tesla around $5 billion with Panasonic — who is a partner in the enterprise — expected to pitch in around $1.6 billion. However, the benefits stemming from it are expected to far outweigh the cost. The benefits to Tesla quite apart, as per Nevada Governor Brian Sandova, Nevada is expected to receive almost $100 billion in economic benefit over two decades from the construction of this factory.

So yeah, Tesla’s factory is your regular santa. The fact that it has driven down the battery production price by 30 percent is also responsible for the lighter than expected price tags of Model S and 3.

Meanwhile, the list of people invited to the ceremony is quite short. Tesla appears to have sent invites to only to certain VIPs, and of course, to folks who won their invites through the company’s Model S sales referral program — where you had to refer five buyers. The media hasn’t been invited yet but we expect that to change as the official ceremony date draws closer.

A bibliophile and a business enthusiast.

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