⚡ Get All Content for 20% Off ⚡

Tesla Seeks $1.6 Billion to Build a 'Gigafactory' Elon Musk's electric car company has ambitious plans -- and needs a lot of money to make them happen.

By Jason Fell

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Elon Musk's electric car company, Tesla, needs some cash. It says it needs $1.6 billion, to be exact.

The Palo Alto, Calif.-based company today announced that it is opening an underwritten registered public offering for that amount in order to fund its growth plans, which include the development and production of its "Gen III" mass-market vehicle and construction of a battery-making facility called the "Gigafactory."

Tesla says it will work with "strategic battery manufacturing partners" to build the Gigafactory, which will span 500 to 1,000 acres of land and employ approximately 6,500 workers. The factory could be located in one of a small handful of U.S. states that are vying for the project, including Texas and Nevada.

Here's an early rendering of the Gigafactory plans:

Tesla Seeks $1.6 Billion to Build a 'Gigafactory'

"The Gigafactory is designed to reduce cell costs much faster than the status quo and, by 2020, produce more lithium ion batteries annually than were produced worldwide in 2013," Tesla says in a blog post. "By the end of the first year of volume production of our mass market vehicle, we expect the Gigafactory will have driven down the per kWh cost of our battery pack by more than 30 percent."

Despite a series of fires, Tesla's Model S luxury electric car was recently named Consumer Reports' overall top pick for 2014.

Related: Elon Musk Admits to 'Conversations' With Apple About Tesla

Jason Fell

VP, Native Content

Jason Fell is the VP of Native Content, managing the Entrepreneur Partner Studio, which creates dynamic and compelling content for our partners. He previously served as Entrepreneur.com's managing editor and as the technology editor prior to that.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Business News

Costco CFO Reveals Uncertain Fate of $1.50 Hot Dog and Soda Combo

CFO Richard Galanti reveals that the price will stay the same — but only "for a while."

Business News

The Most Unexpectedly Popular Side Hustle of the Decade Has Low Startup Costs and High Markups

A new report shows that vending machines are a popular investment — and the industry is set to grow up to $3 billion by 2031.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.