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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Daniel Sparks owns shares of Tesla Motors. The Motley Fool recommends and owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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