6/4/2014

No Decision on Tesla Battery "Gigafactory" Until Year End

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Tesla Motors Inc. CEO Elon Musk says the California-based electric car company won't choose the first site for its battery "gigafactory" until about the end of the 2014.

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Tesla Motors Inc. CEO Elon Musk says the California-based electric car company won't choose the first site for its battery "gigafactory" until about the end of the 2014. A decision had been expected as early as this month.

Musk also says the company may consider as many as two other locales in the western U.S. for additional plants. Tesla is considering sites in Arizona, California, New Mexico, Nevada and Texas. He has said each facility could cost as much as $5 billion and eventually employ 6,500 people.

Tesla sold about 22,500 of its $75,000 Model S electric sedans last year and expects to boost deliveries to 35,000 cars this year. Tesla is preparing to launch its Model S-based Model X crossover late this year.

Plans to add a lower-priced, higher-volume electric sedan within three years will hinge upon opening the first gigafactory by 2017, Musk says. He reiterates that the big facilities will drive down the cost of lithium-ion batteries for EVs by 30%.