Musk’s $5 Billion Tesla Gigafactory May Start Bidding War Yahoo Finance

11 Июн 2014 | Author: | Комментарии к записи Musk’s $5 Billion Tesla Gigafactory May Start Bidding War Yahoo Finance отключены
Eliica (Electric Lithium-Ion Car)

Musk’s $5 Billion Tesla May Start Bidding War

Tesla Inc. (TSLA) ‘s to build what co-founder Musk bills as the world’s battery factory could up the power industry and trigger a contest between states for the 6,500 jobs the $5 billion could create.

The luxury maker announced yesterday it’s selling at least billion of convertible notes to the project and exploring locations in Nevada, Arizona and New Mexico for a 10 facility. Tesla declined to on whether any negotiations had begun.

would rank as the most industrial project out there, Dennis Cuneo, president of DC Advisors LLC and a former Toyota Corp. executive who helped carmaker select manufacturing

Tesla has dubbed the project the and it would make Musk a in both U.S. manufacturing and power. The plant he envisions have more capacity any other to make lithium-ion

This has a huge impact Tesla, said Harley a labor economist at the University of Berkeley. It gives enormous to battery production and the future of the car because that lies in the It’s high stakes, technology.

Tesla plans an of $4 billion to $5 billion by 2020 and fund about $2 billion of the the Palo Alto, California-based said in a presentation on its website. The bond offering could to $1.84 billion, according to a statement.

Power Storage

The is key to Tesla becoming a mass-market capable of producing 500,000 or electric vehicles a year a projected 35,000 this Musk has said. Its cheapest the Model S, starts at $71,000.

The 42-year-old billionaire could get closer to achieving his goal of a leader in the power-storage industry in the as utility customers continue to to batteries and solar panels to electricity bills.

The scale of at the planned factory would be so that Tesla estimates it drive down lithium-ion costs by at least 30 percent.

possibility for batteries capable of large amounts of electricity wind, solar and other sources is what makes the appealing, said James an equity analyst with Nicolaus Co. who rates Tesla a Tesla rose 2.5 percent to at 9:55 a.m. New York

On the vehicle side, I am pretty in my skepticism at $200 or above. a bear, Albertine said. My case is in the case that the become ancillary.

‘Robust Competition’

Tesla, he would essentially become a storage company. That benefit SolarCity Corp. is partly owned by Musk and may be a in the factory.

Musk said week that Panasonic (6752) — now the biggest of lithium-ion cells used in batteries — may also be Panasonic’s participation is not 100 percent he said in a Bloomberg Television

While Tesla identified four states as potential it’s going to draw from many others, said. He predicted a robust where incentives are probably to be a big factor.

A slide-show on the Tesla includes a rendering of the facility in a landscape, with adjacent and wind farms to supply Construction could begin as as this year, according to the

Without question there be a very intense bidding war $5 billion is a breathtaking figure, said. States want the and also the research and development to this. That’s going to be significant.

Eliica (Electric Lithium-Ion Car)

Up Sevenfold

Tesla the fundraising and plans for the gigafactory the shares closed at their since the company’s initial offering in June 2010. gone up sevenfold in the past

The company will offer million of notes due 2019 and million due 2021. The company to grant the underwriters a 30-day to purchase as much as an additional million due 2019, and an additional million, due 2021, bringing the to as much as $1.84 billion. The conversion rate and other of the notes haven’t been according to the statement.

Goldman Sachs Group Morgan Stanley, JPMorgan Co. and Deutsche Bank AG are jointly the offering, the company said.


Proceeds from the sale will also be to produce a Gen III vehicle that’s than the Model S sedan. The will also accelerate of Tesla’s business in the U.S. and as the company prepares to enter next month.

The fundraising echoes Tesla’s sale of billion of new shares and notes in May amid a previous surge in the shares.

Obviously, they the need to strike while the is hot, said Alan an analyst at Baum Associates in , Michigan, who tracks alternative-powertrain What they are doing is advantage of being looked at as a kind of company.

To contact the reporter on this Alan Ohnsman in Los Angeles at

To contact the editor responsible for story: Jamie Butters at

More from

Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)


Other articles of the category "Interesting":

Our partners
Follow us
Contact us
Our contacts


About this site

For all questions about advertising, please contact listed on the site.

Catalog ALL Electric Cars and hybrid/ News and Information about Electric Car and Electric Vehicle Technologies, batteries for vehicle catalog with specifications, pictures, ratings, reviews and discusssions about Electric and Hybrid cars - Green energy