Why Tesla Built A $5 Billion Dollar Factory

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Tesla has made a name for itself by upending things. They upended the idea of a sports car with their Lotus Elise derived all electric Roadster. Building on that success, they upended the luxury sedan world with a long range battery electric Model S. As if that wasn’t enough, the Model S proved to be a competent performance sedan, producing hypercar level 0-60 times. Meanwhile, they’ve launched their Powerwall business and bought SolarCity in the hopes of helping move the world towards renewable energy and away from dirtier fossil fuels. Other companies have reached for the goal of a car that runs on electricity, but even ones that run only partially on electricity have run into problems. Fisker was only able to produce its Karma hybrid sports car for a year before a faulty battery supply chain shutdown production. Tesla has no intention of getting caught up in that problem and has teamed up with battery partner Panasonic to invest $5 billion in a massive Gigafactory in Nevada that will produce enough batteries for 500,000 vehicles a year. As one could imagine, a Tesla factory is no ordinary factory. Tesla has managed to rethink every part of factory building, from modular prefabricated design the way the building heats and cools itself. Whether you call it the Gigafactory, Giga 1, or Giga Nevada, the Silver State’s massive battery factory is just the first of many that Tesla plans to build on every continent where EVs or batteries are sold and in the process take the world one step closer to a renewable energy future.

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