Tesla to Raise Money to Build a Battery Gigafactory

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Feb. 26 (Bloomberg) –- Bloomberg’s Alan Ohnsman reports on Tesla proposing to build a Gigafactory and its importance to the future of the company. He speaks to Emily Chang on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

Shares are going crazy.

They had another record high.

Why do investors like this so much?

It is all about the future.

If you look at the fundamentals now the share price makes no sense.

Some people think the future is very right.

They will do 35,000 cars this year.

They want to scale up.

They mentioned that the giga factory.

That is a big deal and critical to them trying to achieve this goal of getting to multiple thousands of vehicles or year.

As i understand it, tesla consumes our is one of the largest consumers of lithium ion batteries in the world.

How much would a giga factory help?

I think elon has said that it helps and changes everything.

It will potentially be the largest battery factory on the planets.

It will have more production capacity then all of the self production in the world.

This single facility will have more by 2020 is the target.

It would provide them a very low cost potentially.

That is the company goal.

A very low cost to feed their plant in california and maybe other production operations.

If you have also said they are trying to get partners investing in this with them.

Panasonic, their main battery supplier has already been identified as one likely partner.

That is not yet appear to be an official agreement.

There was a japanese media report that said panasonic may invest as much as $1 billion of its own.

Solar city which is another elon-affiliated companies will apparently also be involved in this facility to use the cells made their for its solar power systems.

This is a very fascinating project.

We do not have a lot of specifics about when they will break ground.

The competition has been announced between four western states -- texas, new mexico, arizona, and nevada.

It could run up to $5 billion.

6500 jobs.

Elon musk said this could make a more affordable tesla.

This text has been automatically generated. It may not be 100% accurate.

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