Tesla Motors Inc (TSLA) CEO believes that hundreds of Gigafactories are needed

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Tesla Motors Inc (NASDAQ:TSLA) chief executive officer Elon Musk said that the need for lower-cost batteries for vehicles and power storage means that there will be a need for hundreds of Gigafactories like the one that Tesla is going to build.

 

Tesla anticipated that the battery factory will reduce the cost of lithium-ion cells by more than its initial guidance of 30%, said Musk at the World Energy Innovation Forum annual event hosted by Tesla’s board member Ira Ehrenpreis.

“I think we can probably do better than 30 percent,” stated Musk at the company plant.

Musk said that as carmakers increase demand for batteries, there is “going to need to be lots of Gigafactories. Just to supply auto demand you need 200 Gigafactories.”

Tesla Motors is getting close to deciding where to build its first Gigafactory, which is expected to cost as much as $5 billion. The first Gigafactory will involve partner companies like Panasonic. A groundbreaking could be happening as soon as June.

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