Battery Production in Tesla’s Gigafactories
Introduction
The Objective of Tesla is to speed global transition through sustainable energy. Hence, Tesla aims to increase electric vehicles as well as energy products. Particularly, Tesla wants to boost the production of Five hundred thousand cars each year; thus, these will operate through lithium-ion batteries. As a result, Tesla Gigafactory becomes vital I the supply of batteries would be enough to support the demanding project for Tesla regarding vehicles. Currently the Gigafactory in production of pack batteries along unique energy products in Tesla. This paper focuses on the production of batteries alone and their comparison to different manufactures. Besides, the study focuses on estimated market share regarding production of batteries in electric vehicles as well as sources of Tesla.
Production of Batteries in Tesla
Tesla has based its operations in Nevada Gigafactory 1, New York Gigafactory 2, as well as Shanghai Gigafactory 3. In addition to Gigafactory, Fremont plant is a supplement in the manufacturing. The Gigafactory is not fully complete hence containing a manufacturing square foot of 4.9 million; thus, representing a not more than thirty percent on completion. Gigafactory draws its power from the roof where solar panels are established. Besides, wind and geothermal heat contributes alongside Tesla’s self-batteries. Basically, it would be accurate to say that operations in Tesla relies on local power grind. Gigafactory manufactures Model 3 cell batteries, drivetrain as well as pack battery for cars. However, Tesla rely on Fremont manufacturing heavily. The latter, assembles Model 3 and builds Model X and S (O’Kane, 2018). In fact, the plant in Fremont is more competent compared to Gigafactory due to adequate space of 5.3 million square feet.
Surprisingly, although Tesla plants face hard times in operating space, plant like Fremont challenges the Toyota factory. In fact, Tesla equips more through Model 3 battery cells, leaving the companies like Toyota at a less capacity in the market. As the vice president (Chris Lister) in Tesla would agree, the company intend to achieve beyond electric cars (O’Kane, 2018). As a result, Shepherd (2020) says market players as well as producers such as Ford and VW are speculated to face their biggest challenge due to Tesla Model 3 product.
Estimation in Market Share
Being among the largest manufacturer, Tesla has been able to stimulate a sale of dollars 5.5 billion. However, Tesla has also generated dollars 4.1 billion as far as direct spending is concerned. Notably, the figures are only as representation of 2017 financial year. The following year, the rate of production in batteries accelerated in 20 Gwh (O’Kane, 2018). The latter, marked the highest volume of batteries produced globally. Hence, the Gigafactory in Nevada accounted for the success in the year 2018. In the year 2019, the share of Tesla in the market concerning automotive rose gradually by 1.3 percent. As far as the United States market for electric vehicles is concerned, it would be accurate to consider Tesla the market leader. Hence, the company made the most sales in battery electric vehicles.
The Model 3 by Tesla is currently estimated to acquire a 60 percent share in the electric vehicle market (Wagner, 2020). Besides, the model is in the market projected to pave the path for electric cars to mass market. Therefore, affordable prices would be speculated as end offerings by Tesla. 140,000 Model 3s were delivered to the United States customers exceeding half the electric cars issued in 2018. Sadly, various analyst differs by arguing that the demand for model 3 would reduce if Tesla vehicles do not qualify American dollar tax of 7,500 offered by the government regarding the electric vehicles (Wagner, 2020). However, the global for vehicles is estimate to be 367,000 vehicles in 2019. Hopefully, the electric cars global market is speculated to raise in to more than dollars 567 billion before the year 2025.
Manufacturer Sourcing Tesla
Panasonic is an automaker that has its specialization in battery cell equipment manufacturing. Tesla, has focused on sourcing cells from Panasonic that are manufactured in Japan for Model X and Model S. Besides, Panasonic manufactures cells for Tesla’s Model 3 product customized in Nevada Gigafactory 1. Raw materials are refined by Panasonic section before being transforming them into cells. Hence, the latter (cells) are applied in Model 3 powering as well as other products. In fact, representatives in Tesla praise association with Panasonic as the automaker together with the battery maker have a tight integration (O’Kane, 2018). Notably, it would be right to that, Tesla is responsible in making drive units by turning the cells made by Panasonic to batteries. As a result, the Model 3 sedan as well as other products hit the cost in the market. Panasonic and Tesla intend to initiate plans in expansion of Gigafactory.
Conclusion
Continued delivery of vehicles around the world by Tesla to customers is focused on craftmanship level being high. Fremont plant indicates the highest operations for Model X, Model S as well as Model 3 as huge components of vehicles are found in the plant. However, Tesla has for better maintained its share in the market as far as electric cats are concerned. Besides, Tesla’s global success in the market relies partially of Panasonic automakers.
References
O’Kane, S. (2018, November 30). Tesla will live and die by the Gigafactory Retrieved from https://www.theverge.com/transportation/2018/11/30/18118451/tesla-gigafactory-nevada-video-elon-musk-jobs-model-3
Shepherd, C. (2020, January 7). Tesla turns up heat on rival carmakers in China. Retrieved from https://www.ft.com/content/3d1b44aa-20ac-11ea-92da-f0c92e957a96
Wagner, I. (2020, January 8). Tesla’s estimated U.S. market share from January 2019 to December 2019. Retrieved from https://www.statista.com/statistics/519579/market-share-of-tesla-in-the-united-states/