<?xml version="1.0" encoding="UTF-8" standalone="yes"?><oembed><version><![CDATA[1.0]]></version><provider_name><![CDATA[Gigaom]]></provider_name><provider_url><![CDATA[http://gigaom.com]]></provider_url><author_name><![CDATA[Katie Fehrenbacher]]></author_name><author_url><![CDATA[http://search.gigaom.com/author/katiefehren/]]></author_url><title><![CDATA[Tesla's gigafactory will make batteries in 2016 for Model S &amp; X]]></title><type><![CDATA[link]]></type><html><![CDATA[<p>Tesla is <a href="https://gigaom.com/2014/05/08/tesla-is-zooming-ahead-with-its-massive-battery-factory/">moving incredibly fast</a> on getting its massive battery factory built. According to the <a href="http://www.sec.gov/Archives/edgar/data/1318605/000156459015001031/tsla-10k_20141231.htm">company&#8217;s recent annual filing</a>, Tesla plans to produce batteries in the factory as early as 2016 for its Model S and Model X cars initially. So yeah, next year. The site only broke ground in the summer of 2014.</p>
<p>Ultimately Tesla needs the gigafactory to reduce the costs of its batteries by 30 percent for its third-generation car the Model 3, which is supposed to be significantly less expensive than the Model S and the X. The Model 3 is targeted to launch in 2017 and the gigafactory is supposed to be able to reach large-scale production of batteries by 2020.</p>
<p>But getting the battery factory built out enough to produce batteries by next year shows the extremely fast pace at which Tesla is now moving. Because the battery factory is a new facility, and Tesla has limited experience being a battery manufacturer, Tesla needs to be able to produce batteries significantly before its Model 3 launch in 2017 &#8212; it needs to test them, and make sure they&#8217;re operating correctly. So using them in earlier models, and not first in the Model 3, makes sense.</p>
<p>Local resident Bob Tregilus <a href="http://www.greencarreports.com/news/1096994_tesla-gigafactory-new-photos-show-progress-on-battery-plant-in-nevada">took these photos</a> of progress on the gigafactory <a href="https://www.facebook.com/bob.tregilus/media_set?set=a.10152797427549022.1073741898.512939021&amp;type=1&amp;pnref=story">two days ago</a> and you can see that some of the buildings are starting to be framed and roofed. Tesla has a deal with Panasonic to partner on the battery factory, but will likely bring in other partners as well.</p>
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