Connect with us

Hi, what are you looking for?

CleanTechnica

Autonomous Vehicles

$5 Billion Tesla Gigafactory Worth $50 Billion, Analyst Estimates

Originally published on EV Obsession.

An analyst at Global Equities Research by the name of Trip Chowdhry has publicly commented that he considers the market value of the Tesla/Panasonic Gigafactory to be $50 billion, according to recent reports.

Considering that the projected development costs of the Gigafactory total “only” $5 billion, and also that Tesla’s current market capitalization is around $32 billion, that figure is quite a notable one. Whether one agrees or not, it’s a number that gets one’s attention….

JB Straubel and Steve roof of Tesla Gigafactory

In his denouement on the subject, Chowdhry drew an analogy with Amazon — noting that the company was originally just viewed as being an online bookseller, not the nearly end-all-be-all of online shopping that it now is.

Just the tip of iceberg was seen at the beginning, in other words. Could Tesla represent such a game-changing force, with such far-reaching effects on the broader industry, as Amazon has? An interesting question. Tesla’s case has certainly been getting stronger and stronger as of late….

“The analyst bases his valuation on the potential revenue stream he sees being generated by the battery factory. Chowdhry believes that the Gigafactory will be capable of generating as much as $100 billion in revenue for the company over the next 20 years. He calls what Tesla is doing with its Gigafactory ‘new industry creation activity,’ meaning that the potential revenue from the enterprise is far greater than most people realize,” Teslarati notes.

“At the annual shareholder meeting on May 31, Tesla announced that its battery output potential could triple to nearly 105 gigawatt-hours of battery cells and gigawatt hours of battery packs for energy storage. Combined, that is nearly three times the total production of lithium ion batteries in the entire world. Musk also noted that the battery plant will also be updating the form factor of its existing cylindrical Li-ion cell that carries a 18 mm diameter and 65 mm height better known as an 18650 to a larger diameter and taller 20700 cell (20 mm dia x 70 mm height).”

While I wouldn’t personally go quite as far as Chowdhry does, I do think that Tesla is likely to be a very disruptive presence over the next decade or so. In the auto industry, and possibly in the energy storage industry as well (presuming the Gigafactory drives down the cost lithium-ion batteries substantially).

Photo by Steve Jurvetson (CC BY 2.0 license)

 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
 

Advertisement
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

James Ayre's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy.

Comments

You May Also Like

Cars

Over the past few years, many a Tesla skeptic has had to sit down to a meal of crow. One who is big enough...

Autonomous Vehicles

In 2017, The Economist declared the internal combustion engine "roadkill" on a controversial cover, claiming, "it had a good run. But the end is...

Clean Transport

The latest aerial video from the Tesla Shanghai Gigafactory site, courtesy of Jason Yang, shows the main structure of the factory very close to...

Batteries

With so much buzz surrounding Tesla's new Gigafactory in Shanghai, some of those newer Model 3 owners might be secretly wondering — a Giga-what? So let's take a second to explain...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.