Elon Musk’s plan for the business development of Tesla can make the manufacturer a leader in the automotive industry but it can be quite expensive. According to experts, the innovations that the head of the corporation wants to realize, will cost billions of dollars, writes Bloomberg.
In this expenses is included the Tesla’s Giga factory for batteries, which is currently being built in Nevada. It became clear that the company will speed up its construction to allow it to open before the release of the new Model 3 in the market.
The strategy, which Musk presented, does not specify details about how will be financed the merger between energy company SolarCity and Tesla.
According to Elon Musk himself the next strategic move will cost the corporation “tens of billions” of dollars in the long term and will require “only a modest increase in capital,” writes Reuters.
At a press conference, Tesla’s boss also confirmed that the battery plant in Nevada, which is estimated at $5 billion, will be built in partnership with Japan’s Panasonic Corp.
Musk said that the factory will produce batteries for 1.5 million electric cars per year, as their prices could fall to $100 per kilowatt-hour by 2020.