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Tesla Gigafactory Spent Over $50 Million So Far and It Won’t Stop

Big plans require big investments and Tesla’s Gigafactory makes no exception from this rule, after Tesla has already spent more than $53.1 million on construction works at the Gigafactory site, according to the Reno Gazette-Journal.
Tesla Gigafactory 1 photo
What Elon Musk called “a huge bet” continues to take shape in the Nevada desert, east of Reno. When finally finished, the Tesla Gigafactory will become the largest lithium-ion battery plant of its kind in the world.

But until then, it may also prove a giant funds eater. To this point, the construction is said to cost over $34 million, according to official permits released by the Storey County Building and Planning Department.

This amount however, does not include cost estimates for ground clearing, retention basins and temporary work trailers. Which means that overall costs, with the estimates added, would generate construction costs to date at the Gigafactory site of around $53.1 million.

According to Green Car Reports, the cost of clearing vegetation and other preparations is rated at around $15 per cubic yard, which stands for a hefty $2.1 million for the entire site. In addition, a retention basin for capturing water runoff is estimated to cost around $1 million, while pad construction would go as high as $16 million.

As it should, the growing activity around the Tesla Gigafactory site attracted a lot of outside contractors and subcontractors, but also boosted the local economy, after Storey County managed to collect $246,000 in permit fees from Tesla as of last month.

Given that the plant is expected to supply huge quantities of battery cells for Tesla’s future electric fleet, its total cost is estimated at around $5 billion. As we reported some time ago, Panasonic contributed to the plant’s development with 1$ billion, while the state chipped in with a $1.2 billion incentive package.

 
 
 
 
 

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