Why Tesla Gigafactory Is So Important for Model 3 Success

Why Tesla Gigafactory Is So Important for Model 3 Success

Tesla Gigafactory’s prolongation capacity

Tesla (TSLA) Gigafactory is approaching to have annual battery prolongation ability of 35 gigawatt-hours (or GWh). It’s being built in team-work with Panasonic and other vital partners. In this partial of a series, we’ll see because Gigafactory is so critical for a success of Model 3.

Why Tesla Gigafactory Is So Important for Model 3 Success

Model 3 demand

Before rising Model 3, Tesla already had a array of oppulance electric vehicles in a product lineup. There’s still a high direct for Model S, one of a many successful electric vehicles in a market.

While these oppulance automobile models sojourn a bread and butter for Tesla’s business, Model 3 is targeted to grasp a ultimate design of a company—to furnish a mass-market electric automobile in high volume and make tolerable travel mainstream.

Model 3 is expected to have a cost tab of $35,000 but supervision incentives. However, this cost isn’t a usually thing that creates this automobile indication so appealing. The automobile is expected to come installed with facilities such as autopilot, a smallest 215-mile operation per charge, and 0–60 MPH (miles per hour) acceleration in 6 seconds.

Note that Nissan’s Leaf has already done itself famous in a EV (electric vehicle) segment. In addition, bequest automakers (XLY) General Motors (GM), Ford (F), and Honda (HMC) have already announced their assertive skeleton to deposit in EVs.

Why is Model 3 contingent on Gigafactory?

Large-volume prolongation of a product can order a bound costs and significantly revoke a cost per unit. That’s because Gigafactory is so critical for Tesla. It should move down a cost of Model 3 battery packs with economies of scale. Cost rebate is a pivotal for Tesla to make a Model 3 affordable for a vast array of people and during a same time spin a profit. The success of Model 3 will be rarely contingent on Gigafactory operations and success.

In a subsequent partial of this series, we’ll see what Wall Street analysts are estimating for Tesla stock.

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