Pad is complete for Reno Factory. Going to be doing similar in 1 or 2 other states. Makes sense to have multiple things in parallel. Before moving on, want to make sure things at state level are there that makes sense. Not going for a deal that is unfair to the state or unfair to Tesla. At this point the ball is in the court of NV legislature and governor.
Asking about the 5BN number and on track for suppliers to invest the remainder: 4-5 is pretty accurate up through 2020. 4bn will be pretty close before they get to high volume, as they improve up through 2020 it will likely total 5bn. Tesla will provide 40-50% of the total cost. Panasonic about 20-40%. States 10% and other partners 10,15,20% depending on how vertical they go with the factory. Panasonic was never in doubt to Elon. Actions are what matters, and Panasonic has always taken the actions of an excellent partner. Feel confident hitting the output they need to and the investments they need.
100k exit rate in 2015 and constraint before factory comes online: They see a path to 150-200k cars without the battery factory can't go higher than that without.
Is chemistry going to be the same for batteries? There are improvements to the chemistry and cell improvement. Will see energy density improvement and cost reduction. Seeing 10-15% improvements on the density itself and will be changing the cell shape and size to find the most optimal. Not a lot different from now but 10% more diameter and 10% more height, 30% more energy per cell because of size. Fundamentals of chemistry defines primary costs shape and size don't matter. Chemistry will continue to change to improve.
More on Batteries: "I would be disappointed if it took us 10 years to hit 100$ per kwh pack". Do you think it will then be cost comparable to ICE? "Yes". 30% is not just due to logistics. It is not even the biggest. Designing custom equipment that is much better at processing the equipment makes this work much better rather than some "off the shelf" equipment to build these batteries. Again, they don't need a breakthrough in chemistries. In the long term, there are many interesting things on the horizon. It is hitting a place of no contest with gasoline. They are just pushing it along as fast as they can.