Tesla Motors, Inc.
) recently held the 2014 Annual Stockholder Meeting, wherein it
discussed its plans for the 'Gigafactory,' sales expectation,
superchargers and the Model X. Further, Elon Musk confirmed that he
will continue as the CEO of the company for at least the next 4 to
Tesla said that it will begin construction of the Gigafactory and
finalize the place for it by the end of this year. The company was
earlier tentatively planning to start the construction work in
June, as disclosed in the earnings conference call. The automaker
also disclosed that it might be starting the Gigafactory
construction on three sites instead of two.
Tesla plans to construct the Gigafactory to produce lithium-ion
batteries for its cars in collaboration with various partners. The
automaker expects the factory to provide economies of scale and
reduce production costs based on innovative manufacturing
techniques, reduced logistic wastes, optimization of co-located
processes and lower overhead costs.
By 2020, Tesla expects the annual lithium-ion battery production of
the Gigafactory to exceed the global production in 2013. The
factory will produce enough battery packs to allow Tesla to build
around 500,000 electric cars by 2020. Also, by the end of the first
year of manufacture of the mass market vehicle, the per kWh cost of
production of battery packs is expected to be reduced by over 30%.
) is expected to be the sole manufacturer of lithium-ion battery
cells in the Gigafactory. Tesla expects the deal with Panasonic, to
be favorable for the company. Tesla's third-generation car will be
equipped with batteries which will be produced in the Gigafactory.
These batteries are expected to decrease the cost of power system
of the vehicle.
Next, Tesla is very ambitious about its sales figures. The
automaker recorded sales of 22,500 cars last year and expects to
sell 35,000 vehicles this year. The rise in sales is based on
rising demand and favorable impacts of improving mileage per
charge. Tesla also wants to increase the supply of the Model S
sedan to meet demands in China. In addition, the automaker is
working on expanding the number of high-speed supercharging
stations, particularly in China.
Tesla currently carries a Zacks Rank #4 (Sell). Some better-ranked
stocks worth considering in the same industry are
Tower International, Inc.
). Both Gentherm and Tower International carry a Zacks Rank #1
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