here's the biggest risk with tesla's gigafactory - lithium ion cell

Update from 9: 10m.
Additional risks are included in paragraph 9. NEW YORK (TheStreet)--
Everyone and their brothers went crazy yesterday. Including myself)
Tesla Motor (TSLA -Get Report)
Plans for Geely's factory were announced.
After a good night's sleep, I took a bath and thought about it. maybe it's time to step back and say, "Wait a minute.
"At yesterday's press conference, Tesla said that due to Geely's factory, it is expected to reach the production unit of 500,000 cars per year by 2020.
Given that the company expects to deliver 35,000 Model S cars this year, it is an incredibly fast growth rate, up from 20,000 in 2013.
The 500,000 car number includes Model S and Model X (
Scheduled for release later this year)
As well as the upcoming Gen III model, CEO Elon Musk said the price of the car will be between $30,000 and $40,000.
See also: Tesla's Model X: It looks very ambitious at first glance, which is part of the reason why Morgan Stanley thinks Tesla is not just a car manufacturer, but also a change in the utilities industry, could bring trillions of dollars worth of opportunity to the company.
Forget the fact that the Ji processing plant will be expensive, which is part of Tesla's announcement of $1.
As the company continued to grow, 6 billion convertible bonds were issued yesterday.
All companies need capital and Tesla is no different.
One thing that bothers me is the company's 10-
K filing, which released the document yesterday in conjunction with the debt issue and the Gigabit factory announcement.
"In addition, we have announced our intention to develop Gen III, and we hope to produce Gen III at the Tesla factory after the launch of Model X.
We intend to offer this car at a lower price and expect to produce it in a higher quantity than our S-model.
It is important that we expect to produce our third generation cars for the mass market, so we need a high
Supply of lithium
Ion batteries at reasonable prices.
Our plan is to try to produce lithium.
On the new Tesla Gigafactory, the ion battery and the finished battery pack for our Gen III vehicle, our production plan is in a very early stage, we have not yet chosen a venue for the construction of Tesla Gigafactory, nor have we completed the factory design.
In addition, we have no experience in the production of lithium
Therefore, we intend to involve partners with extensive experience in cell production, and so far we have not formally established such partnerships.
In addition, the construction and operating costs of Tesla's Ji processing plant may exceed our current expectations, and the time for Tesla's Ji processing plant to go online may be longer than we expected.
If we can't make Tesla Gigafactory in time to produce high quality lithium-
Ion batteries for Gen III at a reasonable price, so forced to rely on others to provide us with lithium
Ion batteries for Gen III, our ability to produce Gen III vehicles at a price that enables us to sell Gen III for a profit may be limited.
Finally, our experience in allocating available resources in the design and production of multiple models is very limited, such as Model S (
Including any variations we may introduce, such as right-hand drive)
Model X and Gen III.
While we hope that each of our production vehicles and their variants will meet the different segments of the automotive market, our vehicles may eventually compete with each other, this may delay sales and related revenue to some time in the future.
In addition, if we cannot accurately predict the demand for each vehicle, this may lead to inefficient expenditure and production delays.
In addition, historically, automotive customers have begun to look forward to the frequent launch of new and improved models.
In order to meet these expectations, we may need to introduce new vehicle models and enhanced versions of existing vehicle models on a regular basis in the future.
With future changes in automotive technology, especially in the performance of electric vehicles, in order to continue to provide the vehicle with the latest technology and meet the expectations of customers, we will be expected to upgrade or adjust our vehicles and launch new models.
So far, we have limited experience in the design, testing, manufacturing, upgrading, transformation and sales of electric vehicles.
Bold part-faced (I added that)
I was worried.
Tesla wants to build the world's largest lithium-related plant.
Ion battery production, but it has no experience in producing ion batteries?
It worries me a little.
Obviously, the electric car giantis will work with other companies in the factory ,(
In terms of capital expenditure of 5 billion, the factory will cost $4 to $2020, of which $2 billion comes from Tesla)
This is probably Panasonic, which has built lithium-
Tesla's Ion battery may be a partner.
However, this is a major cause, not lost by people.
John Lovallo, analyst at Merrill Lynch (
Who is a huge burden on stocks)
Note the potential environmental problems of this plant.
According to Tesla's disclaimer, it did not build li-
This is a guarantee for ion batteries.
"We believe that Tesla's planned battery Gigabit plant may cause environmental problems in the target state," Lovallo wrote in his report . ".
"In fact, a 2013 report released by a group including the Environmental Protection Agency and the US Department of Energy found that the manufacture of lithium-
Ion batteries increase the risk of resource depletion, global warming, and ecological toxicity.
The report also mentions an increase in the likelihood of respiratory, pulmonary and neurological complications in people exposed to the manufacturing process.
While similar risks can be said to exist for many types of manufacturing plants, we believe
The nature and scale of Tesla's proposed project may attract greater attention from state and local governments, offsetting the temptation to increase employment opportunities.
Lovalo also pointed out that although Tesla is talking about lithium --
There are other battery chemicals that can challenge it in the future.
"In fact, the current battery, sodium-sulfur (NaS)
Batteries and lead
Acid batteries seem to be quite attractive alternatives, which could bring additional resistance to Tesla's gigabit batteries.
"There is no doubt that the Gigabit plant is a huge opportunity for Tesla as it will produce battery production worth 35 gigawatts and packaging production worth 50 gigawatts.
However, there is a need to be cautious, especially given the disclaimer regarding the absence of lithium experience
Production of ion batteries.
Just some food worth thinking about. --
Chris Ciaccia wrote> contact by email in New York.
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