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The Gigafactory -- Tesla Motors, Inc.'s Greatest Advantage?

Tesla (NASDAQ: TSLA  ) announced during its fourth-quarter earnings call that it is going to build a Gigafactory. What is the Gigafactory? Imagine all the world's current lithium-ion supply in one factory. It's a $4 billion-to-$5 billion project that Tesla is taking on to allow it to scale battery supply enough that it can build a fully electric car with 200 miles of range for just $35,000 -- about half of the starting price for its Model S luxury sedan.

While the Gigafactory announcement certainly boosted investor confidence, a stream of headlines since have largely painted the project as the company's biggest risk factor. While there certainly is risk to Tesla's big bet, Fool technology specialist Daniel Sparks looks at the Gigafactory from a different angle in the following video. Daniel proposes that the Gigafactory may be the company's most significant competitive advantage.

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  • Report this Comment On May 18, 2014, at 12:43 PM, london1958 wrote:

    This is all good news....and we haven't even looked at any advancement in the battery technology!

    An unusual step by an end-user, Elon Musk has even been in touch with lithium producers.

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Daniel Sparks

Daniel is a senior technology specialist at The Motley Fool. To get the inside scoop on his coverage of technology companies, follow him on Twitter.

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