The maker of luxury electric cars announced on Wednesday that it was selling at least
"This would rank as the most attractive industrial project out there," said
Tesla has dubbed the project the "gigafactory", and it would make Musk a force in US manufacturing and electric power. The plant he envisions would have more capacity than any other to make lithium-ion batteries.
"This has a huge impact beyond Tesla,"
Tesla said it planned an investment of
Musk said the plant was key to Tesla becoming a mass-market vehicle maker capable of producing 500 000 or more electric vehicles a year. The company's cheapest model, the Model S, starts at
The 42-year-old billionaire could also get closer to achieving his goal of being a player in the power-storage industry in the US, as utility customers continue to turn to batteries and solar panels to reduce electricity bills.
The scale of production at the planned factory would be so immense that Tesla estimates it would drive down lithium-ion battery costs by at least 30 percent.
That possibility for batteries capable of storing large amounts of electricity from wind, solar and other renewable sources was what made the project appealing, said
"On the vehicle side, I am pretty steadfast in my scepticism at
Tesla, he said, would essentially become a power storage company. That would benefit
Musk said last week that Panasonic - now the biggest supplier of lithium-ion cells used in Tesla's batteries - might get involved. Panasonic's participation was "not 100 percent confirmed", he said.
While Tesla identified four states as potential hosts, Cuneo said many others would be interested. -
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