"We find the Gigafactory will only reduce the Tesla Model 3’s cost by $2,800, not enough to truly influence whether this lower-cost EV will be a success or not." well, I don't have access to the report, but I'm very curious as to why they think that the gigafactory will only reduce the cost of Model 3 from $37,800 to $35,000. That just seems silly to me. I would think the savings are going to be much more significant from that. They also seem to just toss out anything substantial from SolarCity. I guess whoever wrote that article doesn't know about the potential usage of it for grid storage. Lux thinks that they'll produce more batteries than they know what to do with them. No mention either of the fact that the gigafactory is being designed to be able to be retooled/upgraded for for new battery types and chemistry's as they are invented. Lux just seems to be super short sighted. Report: Tesla Gigafactory a Well-Played Overreach - IEEE Spectrum The Tesla-Panasonic Battery Gigafactory: Analysis of Li-ion Cost Trends, EV Price Reduction, and Capacity Utilization :: Lux Research Lux also think's Tesla will only be producing 240,000 cars a year by 2020. again, super-short sighted. they factory was just retooled for the Model X and the production line will soon be able to (if not already) make 120k cars/year. we've got 5-6 more years till 2020, so to think that the growth is only going to go from 120k to 240k heavily discounts the demand for the Model 3. Clearly the authors/Lux have never driven a Tesla before. If they had, they would've realized that the demand is going to be through the roof and Tesla won't be able to make enough and they'll have to expand even further. other car manufacturers should be bracing themselves right now for bankruptcy once the Model 3 is out or at a minimum seriously investing in making some type of quality EV since nobody will want to buy gasoline powered cars anymore as it just doesn't make any sense. why pay $40k for a BMW that is less technically savvy and still have to pay $80 to fill up when you could buy a Model 3 for $35k , get all the cool features like supercharging while only paying just a fraction, if not completely free, of the cost for "filling er up". Lux needs to open their eyes.