lithium ion battery pack Tesla's Gigafactory Is Going to Be Expensive

New york (the street )--
As a big Tesla car yesterday (TSLA-
Morgan Stanley analyst Adam Jonas talks about the upcoming Geely plant, which Tesla has designated to produce lithiumion battery.
Although no one outside is tight-
For Tesla's digital computing staff, they have a great understanding of its cost, which can be very expensive.
Jonas pointed out that as an integral part of Tesla's future, the cost of Geely's factory may exceed $1 billion, which may be the reason why Tesla will cooperate with Panasonic, Apple (AAPL-Get Report).
"The company plans to build a highly vertically integrated battery pack facility in New York
There is no precedent that the United States can provide a variety of end-use purposes . "
As electronics manufacturers say they are "working on a variety of possible ways to strengthen ties with Tesla," Panasonic's stock surged overnight in Japanese trading as rumors continued, panasonic will cooperate with Tesla in the factory.
At last week's earnings call, Tesla CEO Elon Musk appeared to confirm the rumors, but he noted that we will hear more about this week.
"Well, we actually expect more than one partner in the factory," Musk said on the phone . ".
"I mean, it's clear that Panasonic is currently our main partner in battery production, so the default assumption is that Panasonic will continue to work with us at gigabit plants.
However, there may also be other suppliers in the factory to provide pre-
The cost of the battery is [ph] material, so something like anode and cathode material, separator, electrolyte, etc.
Musk confirmed in another interview with Bloomberg that Tesla officials met with Apple executives last spring, but would not comment on whether it was about Geely's factory or something.
Jonas pointed out that Geely's factory is an important part of Tesla's future, and it can push the company in another direction, not just making cars.
We found the last sentence of Tesla's prepared review.
The company's plan to build the world's largest lithium-ion battery plant is intriguing: "It's a huge opportunity to lower the cost curve to levels that people haven't thought of yet.
We find that investors are starting to seriously ask whether Tesla is more than just a car maker, "Jonas wrote in a note to customers earlier this year.
"If this company can build technology and scale leadership in every storage and infrastructure, maybe one day, we can look back at Tesla's humble beginnings as a carmaker, like when Amazon started as a book seller?
"This week, even today, we may hear something about Geely's factory.
You can bet, though, that whenever we hear it, it will be very expensive no matter what it needs. --
Chris Ciaccia wrote> contact by email in New York.