Gigafactories could soon power the whole world: Elon Musk

20 April 2017

Tesla's 'Gigafactory' in Nevada, had started production and was now churning out lithium ion battery cells by the masses as it looked to ultimately cut the cost of sustainable energy.

This would not only revolutionise the automotive industry, according to Tesla boss Elon Musk, Gigafactories could soon power the whole world.

In a recent conversation with fellow sustainability advocate Leonardo DiCaprio, Musk said it would take only 100 Gigafactories to supply the world with all of its energy and the CEO was calling on companies 'much bigger than Tesla' to help accelerate the transition.

The name of the factory derived from 'giga,' a unit of measurement that represented billions.

One gigawatt hour meant one billion watts for one hour which equaled one million times one kilowatt hour.

"The fossil fuel industry is the biggest industry in the world, they have more money and more influence than any other sector, so I mean, the more that there could be some popular uprising against that the better," Musk told DiCaprio during a recent visit to the Gigafactory for NatGeo TV.

"But I think the scientific fact of the matter is we are unavoidably headed towards some level of harm. So, the sooner we can take action, the less harm will result."

Meanwhile a tweet from Elon Musk about Tesla announcing details on a planned electric semi truck, had prompted one analyst to downgrade its would-be competitors.

Piper Jaffray analyst Alex Potter in published a note on Tuesday said he was downgrading engine and truck manufacturers Cummins and Paccar, partly because "their valuations already reflect cyclical optimism, but also because we think TSLA's impending arrival could pressure valuations."

In a separate note strictly on Cummins, Potter explained his position further, "Cummins makes diesel engines, but companies like Tesla (among others) are aiming to supplant CMI's products. These Silicon Valley disrupters are not confining their ambitions to sedans; instead, they have announced plans for electric semis, electric pickups, electric buses, and various other products that defy the preeminence of diesel engines. CMI enthusiasts will note that EVs won't replace diesel trucks in the coming 2 years (not in a material way, at least) and we agree. But when/if electric drivetrains are proven viable in the first commercial vehicle segments, we think incumbents' valuations could fall rapidly thereafter."

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