Tesla Announces Commencement of Operations in its Gigafactory

Tesla Announces Commencement of Operations in its Gigafactory

The smart car maker, Tesla, has announced that production of lithium-ion batteries in its Gigafactory has commenced. In a statement, the company said that it was looking forward to steadily increasing the production of batteries in its enormous 1.9 square foot factory.

‘We are expecting to see our production costs considerably decline as we increase the level of efficiency and automation in the factory,’ the statement from the company further stated.

Tesla has been working around the clock to production at its new facility. In the recent past, concerns have been raised on whether the company could successfully start and sustain production of the much-needed lithium-ion batteries in its ambitious large factory in time.

Tesla had announced that it was banking on the facility to fuel its targets of selling at least 500,000 new models of the Tesla 3, its flagship car model. It was noted that one of the constraints that the company was facing in meeting its sales targets was a lack of enough lithium-ion batteries.

Another constraint that the company has been facing so far is the high costs of production that are involved in the process of acquiring lithium-ion batteries from outside the US. Lack of locally-produced batteries has repeatedly been cited as one of the main reasons as to why the new Tesla cars remain highly priced.

However, it appears that with the new factory now running, Tesla is set to achieve its goals. The new factory is a result of a partnership between the company and Panasonic. When at its peak, it is expected that the factory will provide direct employment to more than 7,000 people both directly and indirectly.

‘By bringing down the cost of production, we expect that this new facility will help us to develop new products for more people, thus helping us to have a big impact on global sustainable energy practices,’ the company added in the statement.

The batteries produced in the new factory will be used to not only power the new car model but also to develop energy storage solutions.

Many observers are likely to point out that the recent developments augur well with the prevailing political climate in the US. The President-elect has repeatedly chastised American companies that outsource their manufacturing to offshore destinations. Given that nearly all the components of the new model of the Tesla car shall be manufactured in the US, it appears that the policies of the company are in line with the beliefs of the incoming administration.