This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Here's What Tesla's Gigafactory Will Look Like

NEW YORK (TheStreet) -- In conjunction with the $1.6 billion debt offering, Tesla Motors (TSLA) just announced, the company finally revealed plans for the Gigafactory. Much to no one's surprise, it's massive.

The carmaker notes that it expects to reach production unit rates of 500,000 cars per year by 2020 because of the Gigafactory. This is much faster than Morgan Stanley analyst Adam Jonas noted in his massive price target hike yesterday.

Tesla shares were higher in after-hours trading following the announcement, gaining 2.5% to $259.20.

Tesla also noted that due to the Gigafactory, battery costs would come down more than 30% by 2017, when the mass market, Gen III vehicle is slated to appear.

By 2020, not only is the Gigafactory expected to help produce 500,000 cars per year, but it's also going to be producing 35 gigawatts worth of cell production and 50 gigawatts worth of pack production.

It's going to be a huge factory, requiring anywhere between 500 and 1,000 acres, taking up 10 million square feet and housing up to 6,500 employees.

Though the final spot for the Gigafactory is yet to be determined, Tesla noted it is choosing between four states to get the battery packs to its Fremont, Calif. plant: Arizona, Texas, Nevada and New Mexico.

The company and its partners will invest between $4 and $5 billion into the plant by 2020, with $2 billion coming from Tesla alone. Tesla did not specify who would be partnering on the plant.

Here's what the Gigafactory will look like, according to Tesla's projections:

-Written by Chris Ciaccia in New York

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs