Tesla Motors Inc. (NASDAQ:TSLA)’s success in the electric vehicle sector comes down to enthusiasm and leadership of inspirational CEO and co-founder, Elon Musk. No matter what the challenge is Musk has always delivered something which was seen by the recent signing of an agreement for the construction of a $5 billion GigaFactory in Nevada. Musk has not only enjoyed success with Tesla, but his other startup SpaceX recently won a $2.6 billion contract from NASA for the manufacture of a spacecraft that is to be used to ferry astronauts to space.
Completion of the factory is expected to have an immediate impact on costs of Tesla Motors Inc. (NASDAQ:TSLA)’s electric Vehicles, which are at the moment a bit high attributed to high battery costs. Construction of the giant battery factory has already started; Tesla having received $1.3 billion worth of tax credits from the state of Nevada as well as its partner in the project Panasonic promising to chip in with $1 billion.
Tesla Motors Inc. (NASDAQ:TSLA)’s vehicles have enjoyed success mostly because of their mileage coverage that can reach up to 400Km when fully charged compared to only 75Km from rivals. The distance coverage, when fully charged essentially, puts Tesla’s vehicles at the same level with the normal petrol and diesel vehicles.
Tesla Motors Inc. (NASDAQ:TSLA)’s batteries are also unique as they use thousands of laptop cells under one pack compared to hundreds of much larger batteries used on electric vehicles of rivals. Perfectly designed battery pack means it can fit underneath the vehicle accommodating up to 18650 lithium ion cells under one pack. The 18650 Lithium-ion cells being extremely small allows for faster and easy shedding of heat consequently eliminating scenarios of overheating underneath the car.Innovation and technology have also eliminated the probability of damaged cells overheating consequently affecting other cells. The batteries are at all times maintained at cool temperatures, a property that allows for easy charging as well as improving reliability and battery life. Tesla Motors Inc.
Innovation and technology have also eliminated the probability of damaged cells overheating consequently affecting other cells. The batteries are at all times maintained at cool temperatures, a property that allows for easy charging as well as improving reliability and battery life. Tesla Motors Inc. (NASDAQ:TSLA) has never diverged the amount of costs it incurs for each battery although consensus estimates puts the figure at between $400 and $500 per kilowatt hour.
Completion of the GigaFactory is expected to be of benefit to Tesla Motors Inc. (NASDAQ:TSLA)’s effort of producing more cars of up to 500,000 annually as it will be able to produce up to 35 gigawatt hours of lithium cells annually. Focus now shifts to 2015 where the giant electric company is expected to unveil its affordable Model X for the mass market.
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