According to a new building permit recently issued to Tesla Motors Inc , the firm’s Gigafactory will be expanded further by December 2016. As of June 2016, the Gigafactory is comprised of 4 sections (A – D), & is nearly 500,000 square feet big. According to an article recently published on Electrek, the expansion of the factory will involve the addition of a new section (section E.) The article reads “The new building permit is for the expansion of the area ‘D’ into the area ‘E’ and it is valued at $63 million – making it the job with the biggest valuation of any project related to the Gigafactory to date.”
Tesla Motors Inc’s Model 3 – Their First Mass Market Vehicle
Tesla Motors Inc is a big player in the electric vehicle market, as they have been designing, developing & producing electric vehicles (& power units) for a long time. Tesla’s cars are traditionally seen as a premium product, due to the many luxuries they offer & their expensive price tags. In recent years, there have been many U.S. based start-ups in the EV sector, hoping to challenge Tesla’s authority. For example, Faraday Future began operating just a few years ago, & they were recently given permission to test their self-driving cars in California.
Tesla’s Model 3 electric car, which was unveiled on the 31/03/2016, is different from the vast majority of the other EVs that they produce. Tesla Motors Inc’s Model 3 was their first automobile that was aimed at the mass market, & in comparison to the other vehicles that they manufacture & sell, it is relatively cheap, with a starting price of just $35,000. The car proved to be in high demand, with nearly 400,000 potential buyers paying a $1,000 reservation fee. Initial delivery of the Model 3 is planned for late 2017. CEO of Tesla Motors Inc, Elon Musk, described the launch of the Model 3 as “the biggest product launch ever.”
Move to “Mass Market EVs” Stimulated Need for Gigafactory
The new Gigafactory that is being built in Nevada will produce lithium ion batteries, and it is expected that it will be complete & fully operational by the end of the decade. It can be argued that the sheer demand for the Model 3 is one of the main reasons why Tesla they are building the Gigafactory. The factory is being constructed with assistance from Panasonic Corporation . It was reported that Tesla could cause the price of lithium to surge, as they would be using it in vast quantities.
As the NASDAQ closed on the 23/06/2016, a share in Tesla Motors Inc was trading at $196.4, giving the company a market capitalization of $25.66 billion.