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How much Toyota must invest in batteries for 10M car a year?

Discussion in 'TSLA Investor Discussions' started by narutium, Jul 17, 2017.

  1. narutium

    narutium New Member

    Joined:
    Jul 17, 2017
    Messages:
    1
    Location:
    thailand
    HI there.
    I found on the internet that Tesla and panasonic have to invest $US5-6 Billion into Gigafactory just to have enough batteries for 500,000 units of cars. And it takes a few years to get the Gigafactory to be fully completed and fully operational. and this is the main reason Tesla is at the moment not profitable because the company heavily invested.

    If the big car companies like Toyota, GM and VM claim they will produce EV in a million in a few years from now, how are they going to get enough batteries?

    Do they invest heavily in their own battery producing plant? or simply just buy it from China? Are they going to be enough?
    10 million units will need $US50-60 Billion investment is it correct?

    Thank you a lot.
     
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  2. SwTslaGrl

    SwTslaGrl Member

    Joined:
    Oct 23, 2016
    Messages:
    265
    Location:
    Sweden
    Hi, I think Tesla's approach is the best, build out the Gigafactory in smaller sections. The first sections brings in revenue to continue the build out. This way the initial investment is smaller. The experience and improved tech will be applied to the following build out too. The iterative approach of Tesla.
     
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  3. GoTslaGo

    GoTslaGo Learning Member

    Joined:
    Dec 25, 2015
    Messages:
    2,469
    Location:
    NV
    Welcome to the forums! And yes, you hit the nail right on the head. That's the multi-billion dollar question. The automakers are so used to (IMHO) outsourcing everything to build a car and obsessed with just in time manufacturing. Those who haven't fully thought out their EV production assume that someone will just make the batteries for them.
     
  4. cwerdna

    cwerdna Active Member

    Joined:
    Jul 11, 2012
    Messages:
    1,214
    Location:
    SF Bay Area, CA
    Not correct.

    I was trying to figure out why it didn't seem like money spent towards Gigafactory didn't figure into TSLA's profit and loss (P&L). See
    2017 Investor Roundtable:General Discussion
    2017 Investor Roundtable:General Discussion
    2017 Investor Roundtable:General Discussion
     

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