Tesla’s ‘Gigafactory’ to Energize Company Shares Even Further

Tesla’s ‘Gigafactory’ to Energize Company Shares Even Further (Bloomberg)

Elon Musk’s Tesla Motors Inc. (TSLA) plans to sell $1.6 billion in convertible notes to finance the world’s largest battery factory. Company reps are currently touring Texas, Nevada, Arizona and New Mexico, looking at potential sites for the 10 million-square-foot facility. Those dimensions make the TSLA build-out “… the most attractive industrial project out there.” And Musk’s goal of producing 500,000 cars a year will be that much closer to reality. Dubbed the “gigafactory,” this project would make Musk’s company a force in both U.S. manufacturing and electric power. The scale of this project is so immense that Tesla estimates it could drive down the cost of lithium-ion batteries by as much as 30 percent. Even before this announcement, shares of TSLA have gone up seven-fold in the last year. Now the question is, can Musk’s foray into power generation create another seven-fold jump.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.