TESLA to Plans to Build World’s Biggest Battery Factory!

If Tesla is ever going to be a major auto producer, they'll need multiple factories. They can only produce so many out of NUMI. Possibly. . . .

I wonder which would offer "Better" jobs: A car plant, or a battery factory? Which would you want close by?
 
Nothing in the news about breaking ground in NM for it. But pushing dirt in Reno might just be a way to make California up the ante of tax breaks and incentives.

In many ways though, Reno is a good choice, short shipping of finished packs, and close to the Sierras for a greenie work force. Easier travel from car factory to batt factory too.
 
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I lived in Reno not bad, skiing,fishing plus a train. Lot's of Cali produce going east so cheap. Worked as a bartender 6:00 pm to 4-5am. Day of the walking dead. Also never gamble any more. Cured.
 
Dauntless said:
I wonder which would offer "Better" jobs: A car plant, or a battery factory? Which would you want close by?
Town I live in (Holland, MI), has 2 Li-Ion battery plants: LG & JCI - and both of their factories are very sleek and modern looking. There are no smokestacks belching out purple smoke or anything like that. :wink:
 
Panasonic confirms will invest in $5 billion Tesla battery plant


"Under the agreement, Tesla will prepare, provide and manage the land while Panasonic will manufacture and supply cylindrical lithium-ion cells and invest in the equipment, machinery and other manufacturing tools, they said in a joint statement."

http://in.reuters.com/article/2014/07/31/us-panasonic-results-idINKBN0G00PY20140731
 
Well now they are saying the balls in Nevadas court, they want 400-500 million in incentives.
The most Nevada has ever offered was 89 million to Apple to build a server farm in the same business park and the government swore they would never do it again.
Texas can easily offer the money/concessions that Tesla wants.
 
Instead of government just handing over money, they should do this the way it was done with the railroads:

With the railroads making much land useable by providing transportation to and from and a way to ship to market, the government wanted tracks laid EVERYWHERE. With pretty much EVERY railroad declaring bankruptcy in just a few years, it was going to take some creative thinking to make a railroad profitable. I guess the way to compare to battery manufacturing is that we 'Sort of' know the value of making them more readily available but we don't know a timeframe for a business model because this is so new and they're for products that haven't been developed yet.

So the railroads became land companies. The government created checkerboard maps with routes for the rails. The government kept some of the land to sell later, the railroad bought the other squares. But not in cash, with bonds. Further, some or even all the money to build came from bonds the government would hold. Eventually the railroad would sell the land they had made more valuable than when they bought it with the addition of railroad access. This would enable them to pay off their bonds.

So let's call our target city Gernsback, New Mexico. Named for Hugo AGoGo himself, somewhere in the vicinity of that little "Town" that Dogman was telling us about. The State of New Mexico tells Elon they won't GIVE him anything, but they'll provide maybe $1 billion in financing in the form of he gets the land, some hundred$ of million$, in return for owing on those bonds from the company.

They say "We need you to build more than just your plant. We need you to build the community." So in addition to his own building, he's putting in a few store locations, a gas station, enough homes, etc. If the plant itself fails, this has still been a profitable venture. The roads will be built to suit him. There's going to be chargers wherever he SAYS there'll be chargers, including in every home. These homes are build from SIPs, structurally insulated panels. There's solar roofs, insulation, the whole thing being lighter, stronger, cheaper than a conventional stick build. Wish I could remember the name, but there's this house of the future somewhere on the east coast which they periodically tear down and build a newer one because it's always supposed to be the 'Out There' technology that will be old hat before long. It would have been great to link here.

The idea is that a whole community that catches all its' rainwater runoff, etc., will take a certain mentality at the helm to build. As Ayn Rand would tell you, this would never happen if the government had a say in it. But the State of New Mexico would get this high tech community, all the jobs, all while being repaid the whole $1 billion plus interest just for staying out of the way. As well as selling the land nearby they hung onto for a higher price. Don't let anyone steer you wrong, the governments made bundles of money off those railroads in the late 19th century.

And while I'd be all for letting Dogman take charge, there's state officials who would demand it be Elon's baby. So you say this is so logical and sensible that no state would ever allow it to happy? You're probably right, go ahead and forget the whole thing. . . .

So in 1957 Disneyland opened the Monsanto sponsored 'House of the Future.' Set in 1986, it featured such outlandish predictions people just laughed. By 1967 it was closed down, it was so hokey since much of what was predicted was already on the market. Even so, it was taking time for the whole country to modernize to that level. And the wrecking ball bouced right off of itl.

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SAN FRANCISCO (MarketWatch) — A rare Tesla Motors Inc. bear emerged Wednesday, with Lux Research expressing doubt that the electric-car maker will sell as many cars as it hopes by the end of the decade, which would result in overcapacity at its pricey battery factory and affect sales of its mass-market EV.

Not that investors cared that much about that bearish stance: Tesla shares TSLA, -0.33% hit a fresh intraday high of $288 earlier Wednesday, although they turned lower at midmorning. Tesla closed at a record $284.80 on Tuesday, the latest in a string of all-time highs.

The “gigafactory” poses “tremendous risk for Tesla and its partner Panasonic,” said Lux, adding that the company’s goal of 500,000 cars is unlikely to come to pass.

“This half-million number is slightly higher than the [electric vehicle] sales we expect that all auto makers combined will be able to sell in 2020,” Lux said. The more likely scenario is Tesla sales of around 240,000 cars at the end of the decade, Lux said.

Moreover, the gigafactory will bring about only a modest reduction in battery costs, and create the dreaded overcapacity, the analysts said.

Tesla and Panasonic will then face a chicken-and-egg problem. The gigafactory is likely to reduce the cost of the mass-market Model 3’s only by $2,800, not enough to sway the success of the planned lower-cost electric vehicle, Lux said.

Lux’s note comes a day after analysts at Stifel Nicolaus raised their Tesla stock rating to buy with a price target of $400 — the highest price target among Tesla analysts, according to FactSet.

Tesla has gained 87% so far this year, about 10 times the percentage rise of the S&P 500 Index. SPX, +0.08%

The recent share rally follows upbeat second-quarter results, which included news it was on target to achieve an annual rate of production of 100,000 by next year, and deeper inroads in China.
 
just across the border so the staff does not have to pay california income taxes and they have WATER!!!!!!!!!!!!

SAN FRANCISCO (MarketWatch) -- Tesla Motors Inc. TSLA, -0.63% has chosen Nevada as the state to house its battery plant, The Wall Street Journal reported Wednesday. State officials will hold a press conference in Carson City on Thursday, the paper said. Tesla said last month it had broken ground on a site in Storey County, east of Reno, but added that it will still be looking at other sites in other states as a final location would depend on what agreements and incentives it could get from whichever state it chooses. Shares of Tesla fell 0.6%, having hit an intraday record high of $288 earlier in the session.
 
The only disadvantage to Nevada is the poorly skilled workforce.
They have plenty of toothless GED grads for working in warehouses, not sure about skilled factory workers.
The public school system sucks compared to other states.
Also the lack of population doesn't help much compared to other areas they looked at.
They will end up moving a lot of people out here. Not looking forward to rising rent/housing costs.
 
velias said:
The only disadvantage to Nevada is the poorly skilled workforce.
They have plenty of toothless GED grads for working in warehouses, not sure about skilled factory workers.
The public school system sucks compared to other states.
Also the lack of population doesn't help much compared to other areas they looked at.
They will end up moving a lot of people out here. Not looking forward to rising rent/housing costs.

this is not a problem if the people who get hired have the ability to follow procedures and can manage to keep the process flowing. the technical staff will develop the manufacturing process and create and train the workers to implement it.

most people have little concept of process control and usually they get some exposure through the training to statistical process control concepts so they understand a little about what they are watching for.

i found that what mattered most among the operators was a willingness to actually care about what they were doing and to have the ability to ask me if something did not look right to them or if they felt like the color or some other almost invisible aspect of the wafers appearance looked significantly different.

i also developed an in process automated device parameter tester to test the performance of the metal to semicondutor contacts and other device characteristics of the transistors so that variations in the process could be responded to immediately early in the manufacturing stages and i could then shut down the manufacturing operations until those of us responsible for managing production could determine what was causing the process variations and how to get it back under control before restarting production. the manufacturing engineers will have a lot of 20 hour days when it initially starts up and for the first year but i suspect it will be fairly stable process since it has fewer steps than our 10 mask IC manufacturing process.
 
Nevada has water problems of its' own, unless there's been some recent development. Held back from any serious building by the fact they can't accommodate growth. I wonder just how much water this plant will need?
 
I volunteered to relocate to one (or all) of these plants for up to 2 years to help in any way I can getting things up and running.

My bet?
They build 5 plants at once :mrgreen:

I can say this... I certainly wont impede them.
This is one of the most important projects that has ever been taken on.

-methods
 
I can be bought for 1.3B :mrgreen:

Well...
As soon as somebody deposits a couple thousand into my PayPal (to put my stuff in storage and clean up the spot I am at)... plus another couple thousand to drive out, find a place, settle in, etc... I am there.

I heard tickets to Reno are cheap...
Looked up the real estate and found a house for $18,000.00 :D
When the in-laws come to visit they can go to circus circus
About an hour drive to Tahoe
Close to a lot of really cool old history (Gold Rush Era 1850's to early 1900's) with an off road vehicle

Nevada treats its citizens better than California too...
I like the tax situation

Weather is a bit extreme... but that will harden up my boy :twisted:

What are we waiting for?

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-methods
 
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