Tesla Gigafactory Investor Thread

[ScepticMatt]

Dynapower to supply 250kW energy storage inverters for Tesla Powerpack

Press release: Dynapower to supply energy storage inverters for Tesla Powerpack
Data sheets: 250kW Energy Storage Inverter for Tesla Powerpack

SOUTH BURLINGTON, VT, Jul 14, 2015 (Marketwired via COMTEX) -- Dynapower Company, the global leader in energy storage inverters, announced that it will be supplying the 250 kW energy storage inverters as an integral part of Tesla's recently announced Powerpack Commercial battery systems for large commercial and utility customers.

The Dynapower MPS(TM)-250 inverter is a UL-listed, field-proven product with outstanding performance history. Tesla selected the Dynapower system based on the company's technology, track record, and long-term viability.

"Dynapower leads the energy storage inverter market in reliability and efficiency, which together create premium value for our customers. It's this value that has enabled us to deploy a market-defining 200 megawatts of energy storage inverters," said Adam Knudsen, Dynapower President. "For Tesla, we customized the MPS(TM)-250's performance characteristics to provide an optimized system for their demanding market requirements. The combination of proven technology, enhanced by design flexibility is what we provide to every Dynapower customer."

Tesla's Powerpack systems are designed for large commercial, industrial, and utility-scale applications. Multiple 100 kWh DC battery blocks are grouped to scale from 500 kWh to 10 MWh+. These systems are capable of 2-hour, 3-hour or 4-hour continuous net discharge power using grid-tied bi-directional inverters, such as the Dynapower MPS systems. Powerpack systems support various storage applications, including peak shaving, load shifting and demand response for commercial customers, while offering renewable energy firming and a variety of other services for utilities.

According to Fortune this is not an exclusive deal.

 

[SBenson]

Check Out the Latest Views of Tesla’s Massive Gigafactory - Bloomberg Business

 

[neroden]

chickensevil, I appreciate your clear explanation in detail of Tesla's vertical integration strategy and how they hope to get major efficiencies out of it. I am not 100% sure how much efficiency they can get from this, but I do think it is likely to be fairly effective.

One difference between Tesla and a traditional ICE automaker is simply that there are a lot fewer parts. Tesla has repeatedly made changes to cut down the number of parts and the number of subsystems. You can't have in-house expertise in *everything*, but the smaller the number of pieces, the easier it is to have in-house expertise in a large percentage of pieces.

I haven't heard much about the plans for raw materials supply to the Gigafactory and I hope they are going well. It's going to be a *lot* of raw materials and I certainly hope they have the process of getting their own railroad siding well in hand, as well as the various truck docks.

 

[MitchJi]

Hi,

I cannot find the original link:

It will also reduce the ‘per kWh’ cost of production of battery packs by over 30%. The automaker expects the factory to provide economies of scale and reduce production costs based on innovative manufacturing techniques, reduced logistic wastes, optimization of co-located processes, and lower overhead costs.

 

[ScepticMatt]

Hi,

I cannot find the original link:

He said that multiple times (earnings reports). But here is one source (nevada hearing):

Elon Musk battery Model E 80 percent size - YouTube

 

[hirox]

When the gigafactory hits full production the lithium industry will have grown, since Tesla and the lithum industry seem to be intertwined do you guys have investments in lithium mining companies?
I discovered a lithium ETF (LIT: Summary for Global X Lithium ETF- Yahoo! Finance), thoughts? As someone not familiar with the mining industry this would probably be my first choice.

 

[AlMc]

When the gigafactory hits full production the lithium industry will have grown, since Tesla and the lithum industry seem to be intertwined do you guys have investments in lithium mining companies?
I discovered a lithium ETF (LIT: Summary for Global X Lithium ETF- Yahoo! Finance), thoughts? As someone not familiar with the mining industry this would probably be my first choice.

I have Western Lithium Mining.

 

[winfield100]

I have ALB. they bought Rockwood holdings a few months back. (and WLCDF)

 

[hobbes]

Just a detail from the incentives announcement, but confirms GigaFactory on track:

The Gigafactory grand opening party will take place in Nevada at a date to be determined in April 2016.

Referral Program | Tesla Motors

 

[Curt Renz]

Just a detail from the incentives announcement, but confirms GigaFactory on track:

Referral Program | Tesla Motors

The pertinent sentence within the description of the referral program reads as you wrote but contains an ambiguity. Someone in the short-term thread was wondering whether that meant that the party would take place on a currently undetermined date in April 2016, or would a decision be made in April 2016 about some future date for the party. I assumed the former, but rather than simply state my opinion, I just now phoned Tesla and spoke with a sales representative in Fremont. He says that my interpretation is correct. He apologized for the poorly worded sentence. He emphasized that no delay is expected in opening the Gigafactory.

 

[doggusfluffy]

https://pbs.twimg.com/media/CLGs8iOWIAAwIov.jpgrig

 

[tinm]

I have Western Lithium Mining.

I'm a tiny investor in Western Lithium too, but I kinda dread it because their revenue mainly comes from nasty chemical sales to fracking companies.

 

[AlMc]

I'm a tiny investor in Western Lithium too, but I kinda dread it because their revenue mainly comes from nasty chemical sales to fracking companies.

I agree. I am holding my nose as their main product is Hectatore (sp) but I am hoping that as fracking dies they will resort to lithium mining only for the GF.

 

[ohmman]

I'm a tiny investor in Western Lithium too, but I kinda dread it because their revenue mainly comes from nasty chemical sales to fracking companies.

For this reason, I'm trying to find a better angle on the investment. I haven't fully formulated it yet, but will share once I have. I've considered physical commercial real estate investment local to the factory as a potential upside, but the entry there is pretty steep unless someone creates a destination specific REIT.

 

[hobbes]

The pertinent sentence within the description of the referral program reads as you wrote but contains an ambiguity. Someone in the short-term thread was wondering whether that meant that the party would take place on a currently undetermined date in April 2016, or would a decision be made in April 2016 about some future date for the party. I assumed the former, but rather than simply state my opinion, I just now phoned Tesla and spoke with a sales representative in Fremont. He says that my interpretation is correct. He apologized for the poorly worded sentence. He emphasized that no delay is expected in opening the Gigafactory.

Great idea to give them a call and resolve that ambiguity, thanks!

 

[jhm]

Gigafactory investment reaches $183 million as Tesla, NV finalize incentive deal

Lots of good details here. Total spending on Gigafactory hits $183M in Q2, up 28% from the prior quarter.

 

[ohmman]

I discovered a lithium ETF (LIT: Summary for Global X Lithium ETF- Yahoo! Finance), thoughts? As someone not familiar with the mining industry this would probably be my first choice.

I've looked into this some more. A huge chunk of the ETF is reflected in ALB, FMC, PCRFY (Panasonic), and LGCLF. The first two, sadly, trade in the petrochemical trade pretty heavily, and FMC in particular produces lots of pesticides and other petro by-products. PCRFY might be a decent play because they're involved directly in the Gigafactory. Anyone have thoughts on this? Market cap seems attractive. LGCLF is very thinly traded OTC, so from a liquidity standpoint that looks like a risky move.

 

[hobbes]

Gigafactory investment reaches $183 million as Tesla, NV finalize incentive deal

Lots of good details here. Total spending on Gigafactory hits $183M in Q2, up 28% from the prior quarter.

Nice article, also like the timeline at the top.

Not only Tesla ups spending in Q2, also Panasonic which is an even better sign IMHO:

Total investment by Tesla on the project that Tesla CEO Elon Musk calls Gigafactory 1 during the second quarter grew by 28 percent from the previous quarter to $183 million, GOED confirmed. Investment by Tesla partner Panasonic Electronics North America, which is expected to send hundreds of employees to help prepare for production, grew nearly fourfold on a quarterly basis to $2.8 million.

 

[MonroeSS]

Nice article, also like the timeline at the top.

Not only Tesla ups spending in Q2, also Panasonic which is an even better sign IMHO:

I don't mean to make this seem negative. The 28% growth number was referring cumulative spending for end of Q2 vs end of Q1. Spending in Q2 alone was ~$40M compared to ~$80M in Q1.

 

[MitchJi]

Not only Tesla ups spending in Q2, also Panasonic which is an even better sign IMHO.

Why is that important? Panasonic is fulfilling their contract with Tesla. Not a surprise.