Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Tesla Motors Inc (TSLA)’s True-North Aligned Diamond

Tesla Motors Inc (NASDAQ:TSLA) has spurred a lot of discussion around its announcement of building the Gigafactory. It will be erected in Nevada, based on technical and economical incentives, as Elon Musk presented the company’s decision during a media event presented by Bloomberg TV.

Will Tesla Motors Inc (TSLA) CEO make Ford Motor Company (F) CEO Jealous with this Payout?

Tesla Motors Inc (NASDAQ:TSLA)’s intentions have been widely discussed and analyzed for the last couple of days. There’s uncertainty to the company’s ability to fully utilize the capacity that the lithium-ion factory will have, around 35 Gwh/yr, but longer term it might prove worth it.

“It’s worth perhaps just to highlight the sheer scale of the Gigafactory and why do we even call it the Gigafactory. It’s because it’s not just going to be the biggest lithium-ion battery factory in the world, but it will actually be bigger than the sum of all lithium-ion factories in the world,” said Elon Musk.

This means that Tesla Motors Inc (NASDAQ:TSLA)’s investment of about $2 billion with its partners’ contribution of $2 – $3 billion through 2020 will roughly double the global production capacity of lithium-ion batteries. This is will pull prices for batteries and possibly energy in general much under their current level and will stimulate interest in alternative energy for transportation.

“The factory will actually be shaped like a diamond and the reason for that is that if you make it box-shaped we would have to move a lot more earth, so in order to have it to fit more in the environment we had it shaped like a diamond. It’s aligned on true-north so that we can actually map up where the equipment’s going to be by GPS,” mentioned Mr. Musk.

A lot of waiting is required for the results to be seen, but Tesla Motors Inc (NASDAQ:TSLA)’s team seems very confident and prepared for the future and even if the company overestimated its potential, it doesn’t necessarily mean that they have failed somehow. It opened up to the larger public a specialized new branch of the automotive industry and tries to continuously innovate. Hopefully, Tesla Motors Inc (NASDAQ:TSLA)’s struggles will not be in vain.

Disclosure: none

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.