How Come Tesla Builds Its Gigafactories at a Phenomenal Speed?

The math is simple. We need to first understand why Gigactories are necessary in the first place. Tesla is an EV company and EVs are made of batteries. Batteries are the most costly components of Tesla manufacturing and Tesla needs to scale up its battery production to reach the economies of scale and that’s exactly what they are doing with already 5 Gigafactories. These gigafactories are the buildings with the largest footprint in the world and yet, they are finished in less than a year. Ever wondered how it works?

By increasing the effect of the economies of scale by building more Gigafactories, Tesla will have an immense advantage over its competitors also while improving the technology of the battery to save from the cost.

Tesla pays an average of $142 per kilowatt-hour (kWh) for battery cells purchased from its three suppliers: Panasonic, LG Chem, and CATL. By comparison, GM pays an average of $169 per kWh for its battery cells while the industry average runs at…