Tesla Motors is about to set its gears in motion to not just make some of the best electric cars money can buy, but to revolutionize the entire global energy market. The $5 billion gigafactory that the company plans on building by 2020 will have the capacity to manufacture more lithium-ion batteries than what is currently being produced globally in a year. Set to be built somewhere in the southwestern U.S, this factory will employ at least 6,500 people. It will be completely self-sufficient energy wise by relying on solar and wind. With its close association with the company SolarCity, this should not be a problem.
The company aims to do much more than just be off the power grid and be able to build and sustain its enormous factory which according to official estimates, shall power 500,00 electric cars every year. This by itself is an incredible engineering accomplishment. Tesla Motors is trying to go beyond this by aiming at becoming a pioneer in energy production for the coming years. Very simply put, the company seeks to bridge the gap between energy production, transportation and innovation. By making energy more portable through next generation batteries that are set to last longer, charge in lesser time and be more durable than their predecessors, there is a solid plan in place.
To revolutionize the energy market, Tesla Motors is not making an attempt at becoming a leader in innovation in the traditional sense, where the company would manufacture next generation products with better technology. This is already the norm, and Tesla’s gigafactory has an economic electric car for the masses that is scheduled to be produced and distributed by 2020. In addition to this, the company aims at becoming a major supplier of the portable energy needs to entire industries like electronics that already rely on lithium-ion battery technology. By offering a better product, which would be cheaper and superior for as many industries outside of automobiles that rely on similar technologies, Tesla Motors is set to be a global player in the energy market of the future.
It goes without saying that the company’s success has already caught the attention of investors worldwide. After its IPO launch in 2010, the company stock has already appreciated more than 1100 percent as of 2014. By just producing 22,000 cars last year, the company was able to create a market value of $30.55 billion. By comparison, an automobile company like Nissan Motors sold 4.8 million cars to maintain a market value of $37.4 billion, while Fiat whose market value last year was $12.73 billion sold 4.4 million cars. These numbers indicate the tremendous amount of confidence prevalent worldwide for Tesla Motors business prospects.
The company’s European division is growing very fast. Due to the demand overseas, there are plans to open up 30 service centers and stores across Europe. Apple Inc, is rumored to be in steady contact for a business partnership. Apple products like the Ipod, Ipad, Iphone etc rely on twice as much of lithium-ion battery capacity than what Telsa does. Last week, Tesla Motors had announced a partnership with SolarCity to produce a cheaper energy storing option for the homes and business. With cheaper batteries that will bring down the costs of storing energy, and by customizing them as clean energy sources for products manufactured in a wide array of industries, Tesla Motors is on target to revolutionize the energy market for many years to come.
By Unni K. Nair