Tesla Gigafactory Begins Production Of Battery Cells For Powerwall, Model 3

Tesla announced on January 4 that is has begun mass production of the battery cells that will power its second generation energy storage products and the Tesla Model 3 midsize car due out in about a year. The Tesla Gigafactory began turning out pre-production cells last December. The new cells are called “2170 cells”, which indicates they are approximately 21 millimeters in diameter and 70 millimeters long. In a blog post, Tesla says the new battery cells were “jointly designed and engineered by Tesla and Panasonic to offer the best performance at the lowest production cost in an optimal form factor for both electric vehicles and energy products.”

The first 2170 cells will be used in the company’s Powerwall residential storage batteries and Powerpack grid-scale energy storage products. Cells intended for the Model 3 will go into production in the second quarter of this year. Tesla says by 2018, it will be manufacturing 35 gigawatt-hours of batteries, nearly as much as the rest of the entire world’s battery production combined.

The Tesla Gigafactory is a big part of Elon Musk’s plan to rethink how factories work and unlock efficiencies of scale that will drive down the cost of manufacturing. He calls it “building the machine that makes the machine.” He expects ultimately that factories of the future will be able to operate 3 to 10 faster than they can today.

“The Gigafactory is being built in phases so that Tesla, Panasonic, and other partners can begin manufacturing immediately inside the finished sections and continue to expand thereafter. Our phased approach also allows us to learn and continuously improve our construction and operational techniques as we continue to drive down the cost of energy storage. Already, the current structure has a footprint of 1.9 million square feet, which houses 4.9 million square feet of operational space across several floors. And we are still less than 30 percent done. Once complete, we expect the Gigafactory to be the biggest building in the world.

“With the Gigafactory online and ramping up production, our cost of battery cells will significantly decline due to increasing automation and process design to enhance yield, lowered capital investment per Wh of production, the simple optimization of locating most manufacturing processes under one roof, and economies of scale. By bringing down the cost of batteries, we can make our products available to more and more people, allowing us to make the biggest possible impact on transitioning the world to sustainable energy.”

Here’s the part that should gladden the heart of Donald J. Trump. Tesla says making battery cells in the US will create thousands of good paying jobs for American workers. Tesla and Panasonic will hire several thousand workers in 2017. When the Gigafactory is finished and in full production, it will employ 6,500 people directly and create 20,000 to 30,000 additional jobs in the surrounding community. Why not tweet about that, Donald?

Image credit: Tesla Motors

As Model 3 approaches, Audi exec says: 'Tesla did everything right'

2013 Tesla Model S at Supercharger station on NY-to-FL road trip [photo: David Noland]

German automakers, especially the luxury brands, are not necessarily known for humility, modesty, and deference.

So for an executive at such a company to acknowledge that a U.S. upstart that didn't exist 15 years ago "did everything right" is remarkable.

That's exactly what one Audi executive said of electric-car maker Tesla Motors at a recent conference in Germany.

The gentleman in question was Stefan Niemand, Audi's director of battery-electric vehicles, speaking at the recent Technical Congress held near Stuttgart and hosted by VDA, Germany's auto-industry trade group.

As covered by EE Times Europe, he suggested that electric cars can hardly break through into the hearts and minds of consumers if they are simultaneously slower, lower-range, and more expensive than gasoline alternatives.

Niemand feels buyers will be willing to pay a premium for a "sustainable" vehicle if they don't have to sacrifice the pleasure and performance of driving.

Audi e-tron quattro concept, 2015 Frankfurt Auto Show

And, he suggested, once you go electric, you never go back: “Those who [have] ever driven electrically are lost for the internal combustion engine for all time."

Audi is now selling the A3 e-tron plug-in hybrid hatchback in North America, but its first battery-electric vehicle won't arrive until 2018.

That will be a production version of the e-Tron Quattro Concept crossover utility vehicle shown at last fall's Frankfurt Motor Show.

That was the same show at which the Porsche Mission E electric sport sedan was unveiled, which will likely enter the market the following year.

One part of both companies' concept introductions was discussion of a very fast DC quick-charging network.

Porsche touted a future of 800-volt charging, offering 15-minute recharges to 80 percent of capacity, and Audi committed to offering a 150-kilowatt fast-charging network at the same time as the launch of its electric crossover.

Audi of America president Scott Keogh with Audi e-Tron Quattro Concept, 2015 Los Angeles Auto Show

The Tesla Supercharger network, which continues to expand in North America, Europe, and China, presently has a maximum sustained rate of 150 kw.

But at the VDA conference, Niemand went further, suggesting that 350 kw would be required to offer "awesome cars and a seamless infrastructure."

And that's where Niemand tipped his hat to the Silicon Valley startup.

“I hate to admit it," Niemand told his audience, "but Tesla did everything right."

Perhaps one day those words could come to be seen as recognition of a new reality for luxury makers.

Whether or not Tesla Motors survives in its current form, it now offers strong competition for the German legends in some of their core markets—from a company barely a dozen years old that created more advanced technology with far more foresight into the future of automotive technology than they did.

Musk Loses: Tesla Giving Up on Direct Sales Model

After bitter courtroom battles and a brutal stare-down of dealership lobbying groups across the country in a bid to establish a unique (in the auto industry) direct-to-customer sales model, it looks as if Elon Musk has blinked first, if his comments on Autoline Detroit last week are to be taken at face value.

“We may need a hybrid system,” explained Musk, in answer to an Autoline question about scaling up his fledgling car company. “… a combination of our own stores, and some dealer franchises.” (emphasis mine).

If it happens, it would be a stunning turnaround for both Tesla Motors and Elon Musk, who have built a rabid following and loyal customer base in part because of its radically different approach to selling cars and the transparency and customer access afforded by the lack of a franchisee/middle-man. You can read more about Musk’s apparent surrender in the article, below, which originally appeared on Cleantechnica.

Tesla Going The Way Of Franchise Dealerships? Elon Musk Hints, Yes!

---

Elon Musk touting the idea of franchise Tesla dealerships? Sounds about right, doesn’t it? Wait- what!?

In a rather surprising comment — but, I guess he makes those a lot, doesn’t he? — Musk recently noted that as Tesla continues to expand it may need to utilize franchised dealerships, in addition to its Tesla Stores.

That’s a bit of a turnaround for Musk — and a bit humorous considering how hard the dealerships have been fighting against Tesla — but I guess that there’s some logic there. Once Tesla begins selling the Model X, and more importantly the Model 3, the potential is there for huge growth — perhaps a mixture of franchising and direct sales would be the right choice?

The comment was made in a recent face-to-face interview with Musk conducted by Autoline Daily’s John McElroy. Here’s McElroy’s summation of the question: “When I asked him if he could really scale up his retail model in all 50 states of the US and asked how they would handle maintenance and repairs. Musk admitted that relying exclusively on company stores probably was not enough.”

Here’s Musk’s exact words: “We may need a hybrid system, with a combination of our own stores and some dealer franchises.”

Some ambiguity there, but the comments do square up with those made by Tesla’s Legislative Director Jim Chen last year at an industry meeting.

“In a closed door regulatory meeting in fall 2013, two witnesses cited Tesla’s Legislative Director Jim Chen who told a room full of industry stakeholders Tesla only means to sell factory direct until it reaches an undefined minimum volume threshold,” Hybrid Cars notes. “At the time it was unclear whether Chen/Tesla meant such a thing, but this otherwise confirms what dealer associations have said, namely, that Tesla cannot likely grow the whole business to support Model 3 and beyond to the scale it wants with all that on its shoulders.”

With the release of the Model X fast approaching, I guess that we’ll probably find out sooner rather than later if there’s anything to these comments.

Source | Images: Autoline Detroit, Hybrid Cars, via Cleantechnica.