Tesla's vision not shaping up the way it was spruiked, something many others have been saying for a while and explains why supply contracts are not being signed for raw materials including graphite - extract of article by John Peterson........
Tesla's Gigafactory Is A Sickly Shadow Of The Gigavision
Dec. 6, 2016 12:32 PM ET
John Petersen
Since Mr. Musk has said that the Model 3 launch at a $35,000 price point can't happen without a fully operational Gigafactory, this seems like a good time to compare the Gigavision with the harsh realities of life in the Nevada desert.
The following image comes from Page 2 of Tesla's 2014 Gigafactory pitch deck. I've added a green frame to highlight processes that occur in every lithium-ion cell manufacturing plant and a blue frame to highlight processes that occur in every battery pack assembly facility. According to Tesla's most recent report on Form 10-K, the battery pack assembly facility is operational and they expect to begin cell manufacturing this year.
The processes highlighted with red ovals are competencies Tesla needs to meet its cost reduction targets but does not have. Without these competencies, the Gigafactory is simply a big freaking cell and pack factory, or "BFCAPF," and a sickly shadow of the Gigavision that will rely on lengthy Asian supply chains for high-value cathode materials, anode materials, separators and electrolytes.
The following is a simple graphic portrayal of the stark differences between Tesla's 2014 Gigavision and its 2016 Gigareality. The white spaces in the graph on the right are competencies Tesla needs but does not have. Welcome to life in the desert.
http://seekingalpha.com/article/4028566-teslas-gigafactory-sickly-shadow-gigavision
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