Tesla unveils new battery-production gigafactory

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Tesla's Model S sports car. [Photo/Xinhua]

Tesla Motors has unveiled its US$5 billion battery "gigafactory" outside Reno, in Nevada.

The company is opening the plant earlier than expected in order to ramp up production of its Model 3 sedan.

Speaking at the opening on Tuesday in the town of Sparks, Tesla CEO Elon Musk said the company's "master plan" to broaden the electric vehicle maker's product line, could cost "tens of billions" of dollars over time and would likely require a "modest capital raise".

The new plant is being jointly developed with Japan's Panasonic Corp and could ultimately support 1.5 million electric vehicles a year.

Musk also said concerns that the factory would be a financial burden on the state of Nevada are incorrect.

"Nevada is not paying for this facility. The 1.3 billion or so which is the maximum tax incentive that Tesla could get over 20 years, so at an average of like, maybe 50 or 60 million dollars a year, is a tiny fraction of what this factory's output would be. So at the 50 gigawatt hour level this is like a 5 billion dollar a year factory output. We think it will probably be at least two, probably three times that number."

Musk said he was confident the partners could eventually lower battery costs to US$100 per kilowatt-hour by 2020, well below estimates by competitors.

Last week Musk unveiled an ambitious plan to expand the company into electric trucks and buses, as well as car sharing.

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