Tesla expects that Gigafactory 1 will reduce the production cost for assembling electric vehicle battery packs from overseas suppliers of batteries and Powerwall and Powerpack packs assembly by 30%.
Its projected capacity for 2018 is 50 (GWh)/yr of battery packs, and its final capacity upon completion was, as of May 2016, planned to be 150 GWh/yr of battery packs.
This would enable Tesla to produce 1,500,000 cars per year.‹See TfM›
The factory is designed to optimize quality while minimizing cost of production of battery packs and raw material utilization through vertical integration.
Tesla expects to achieve a cost target for production battery packs of under US$100 per kWh of energy storage by 2020, near the "inflection point at which it begins [to cost] less to build an electric powertrain than [an internal combustion engine powertrain] even without subsidies or [considering] the savings of electricity vs. gas."

Tesla claims that Gigafactory will assemble battery packs from batteries purchased overseas for significantly less cost using economies of scale, innovative manufacturing, reduction of waste, and the simple optimization of locating most manufacturing assembly processes under one roof.
Tesla expects that Gigafactory 1 will reduce the production cost for assembling electric vehicle battery packs from overseas suppliers of batteries and Powerwall and Powerpack packs assembly by 30%. Its projected capacity for 2018 is 50 (GWh)/yr of battery packs, and its final capacity upon completion was, as of May 2016, planned to be 150 GWh/yr of battery packs. This would enable Tesla to produce 1,500,000 cars per year.‹See TfM›
The factory is designed to optimize quality while minimizing cost of production of battery packs and raw material utilization through vertical integration. Tesla expects to achieve a cost target for production battery packs of under US$100 per kWh of energy storage by 2020, near the "inflection point at which it begins [to cost] less to build an electric powertrain than [an internal combustion engine powertrain] even without subsidies or [considering] the savings of electricity vs. gas."
Tesla claims that Gigafactory will assemble battery packs from batteries purchased overseas for significantly less cost using economies of scale, innovative manufacturing, reduction of waste, and the simple optimization of locating most manufacturing assembly processes under one roof.
Giga Nevada