NEW YORK (TheStreet) -- Shares of Tesla  (TSLA) are climbing on Thursday, one day after the electric car maker disclosed plans to build a new "gigafactory" to produce enough battery cells to power in excess of 500,000 vehicles every year.  

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Shares of Tesla are climbing on Thursday, one day after the electric car maker disclosed plans to build a new "gigafactory" to produce batteries.

Tesla said the gigafactory will produce enough battery cells to power 500,000 vehicles every year, in addition to other batteries.  According to an SEC filing, the company said 6,500 people will be employed at the 10 million-square-foot battery plant once it's fully operational in 2020.  It's expected to open in Arizona, Nevada, New Mexico or Texas in 2017.

The total cost of the gigafactory is expected to hit $4 billion to $5 billion, with Tesla expecting to spend $2 billion.  In order to help finance that, Tesla announced a $1.6 billion convertible debt offering on Wednesday, with the proceeds also supporting a new mass market vehicle that it plans to market in 2017.

At last check, shares of Tesla were slightly climbing to $254.14.

In New York, I'm Brittany Umar for TheStreet.

-- Written by Brittany Umar in New York

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