Anticipating increased sales of its battery powered electric motor vehicle going forward, Tesla Motor Holdings has nearly tripled its land holdings in Nevada in the recent past.
The company has purchased nearly 2,000 acres of additional land, as work on a factory to produce batteries to power their electric cars and to provide stationary backup batteries, continues.
The initial purchase by Tesla (TSLA, -0.94%) of 1,000 acres was in 2014 when it concluded a deal to establish the battery production facility outside of Reno in nearby Storey County. The agreement significantly included options to purchase additional land in the area that has had very little industrial or manufacturing activity in the past.
Despite Tesla being strapped for cash as a result of retooling costs at its assembly plant in California, constructing fast charging stations globally as well as the new battery plant, the company concluded the land purchase in April and May.
The company recently opened credit lines of up to $750 million to sustain its operations and to assist in funding future development.
A company spokesman said that most of the land would remain as vacant buffer land on which no building operations will take place. The land could provide space for solar arrays to provide power for the manufacturing plant which will cover 110 acres.
The $5 billion Tesla manufacturing plant has been named as the “gigafactory” by Tesla chief executive and founder Elon Musk. This plant is set to be an important link in Tesla’s plans to produce 500,000 battery powered electric cars, while at the same time, lowering the price of batteries by 30% or more.
Elon Musk claimed in May that initial high demand for the stationary storage batteries was so high that the company might have to consider expanding its already ambitious planned battery factory. Does that mean more land for Tesla?