Hello currently has 4 Giga factories with some in construction and others rapidly expanding the term. Digger factory was invented by Elon Musk that refers to a battery plant with the production output so large that it goes into the unit gigawatt hour. Tesla's. First Giga factory in Reno Nevada, has a production capacity of 35 gigawatt hours and is the highest volume battery plant.

In the world in hindsight this may seem like a large amount. However, in Tesla's q1 2020 conference call, Elon Musk has recently hinted at an upcoming Terra Factory. A terawatt hour is a unit which translates to 1,000 gigawatt hours in a mount. That is over 28 times larger than Tesla's Giga factory, one imagine having 28 Giga factory ones all combined into one gigantic.

Building in this video, I'm gon na go deep into the numbers to determine the production capacity in vehicles of the upcoming Terra Factory, with Tesla's battery Investor Day approaching, Elon Musk has been hyping up the event. A lot at Tesla's, q1 2020 conference call musk stated yes, actually we don't want a preamp battery day. We want to leave the exciting needs for that day, but there will be a lot of exciting news to tell, and I think it will be one of the most exciting days in Tesla's history and we're just trying to find the right timing for that. Tesla's upcoming Terra factory will ultimately utilized the new technology achieved in Tesla's secret project codenamed Roadrunner that looks to bring the battery production cost down to $ 100 per kilowatt hour.

Elon Musk also claimed that Tesla's body investor day when either be in California or Texas. We know that the tariff factory which will produce a cyber truck will not be in California, as musk has already stated that the tariff a fee would be in the Midwestern u.s.. California is where Tesla is currently running. It's pilot production line for the Roadrunners battery cells, on the other hand, hosting the body investor day at Texas, implies that the tariff factory will be built in Texas in 2019 Tesla's gigafactory, while allowed for an output of three hundred sixty seven thousand five hundred vehicles.

If Tesla was to build a tariff factory, this would mean Tesla would have a production capacity 28 times larger than the gigafactory one hustlaz tariff factory would have the capacity to deliver over ten million vehicles, assuming the body size is equivalent to each vehicle in 2019, with At least 500,000 peor ders, the cyber truck, has already proven that it has plenty of demand. A tariff a fee would mean that Tesla may be able to catch up to that demand and allow the company to move on to the next phase of production with more vehicles in production. This would also mean higher profit margins, since Tesla will be able to mass-produce cyber trucks on a larger scale. Tesla's team would become faster, our production as they continue to get more skilled.

We saw this happen in Tesla's q1 2020 innings, where Tesla's margin, excluding credits increased due to the fact that Tesla's team began to become more efficient at manufacturing. The model three with an output in the terawatts hustles new gigafactory, would also require a large amount of resources. Elon Musk has once discussed getting into the lithium mining business and in this earnings call tussles team discussed vertically. Integrating to the maximum extent.

Also add our gigas have gotten bigger. Yes, and we argued we could restore green cold terror, yes with multiple products as well, and so you know the absolute number of gigafactory is we mail too many build might be last, but each one is larger and that's under our belief that significant efficiencies by having As much as possible and similar product lines under the same roof and as much vertical integration as possible, all in one facility just a couple hundred miles away from Tesla's Giga factory one, there is an area named lithium Valley with a huge amount of easily exploitable lithium. This area lies between Oregon and Nevada and is named or avada. While this remains as speculation, it could be possible that Tesla gets into the lithium mining business.

Now my question is: will there be enough? Is there enough lithium supply in the world to enable you to build everything that you ambitions? You want to build in the next few years at an affordable price. I mean the nice thing that lithium is it's extremely abundant on earth. I mean the theme. Is the third most common element in the universe, and I mean the reason we don't have just free hydrogen available is because it's bound up in water and then the reason we don't have a lot of helium is because it floats away.

But but lithium does not float away, and, and so it is, there's lithium insult foam virtually everywhere and so that there's definitely no supply issues with lithium but to get to the neurons. This is a question which you're, probably aiming for, which is like in in the timeframe available like in the next year or two years. Will they be lithium in the form that that that Tesla needs, which is lithium, hydroxide insufficient quantities at a price that is reasonable and does not materially affect the cost of the model 3jv? I didn't see that one coming the I mean you're, it's exactly right. I mean we need to make sure that we have the extraction and processing capacity, but it's it's not that much different than lining up other supply chain elements or components even for the car.

It just has a little bit longer lead time, and you know Tesla spent a lot of time working with all the different lithium companies, all the way, from tiny startups up to the the sort of large named lithium companies all around the world and we're working with Them to figure out what are the most economical and efficient ways to either have them, invest, or you know, perhaps even have us, be involved to make sure that they're investing on the right timeline to have the capacity ready when we need it and we're also finding Ways to potentially even reduce the cost here below what people had done in the past, because a little bit like with batteries in the gigafactory you know lithium is not a mature market. It's not traded on the London Metal Exchange. It's it's subject to a lot of speculation right now and you know, there's you know kind of lithium booms that happen in different parts of the world. This does not relate to the actual cost of production of lithium.

You know that is relatively stable and, as Elin said, there's a lot of it. So you know once we can, you know appropriately, invest in the risk extraction, refining processing. You know the price of lithium is quite low and quite stable. Overall Tesla's goal is to accelerate a transition to sustainable energies and, with the legacy automakers struggling to create Giga factories, it's becoming clear that the gap between Tesla and legacy automakers is still continuing to widen.

If you enjoyed this video, please hit the like button and subscribe. Also, please consider supporting me in pei-chun in the description below I appreciate your support.