Thursday, February 27, 2014

Tesla Gigafactory

Another cold day but I have to venture outside to get an emissions test. I didn't know that the state closed their emission facilities and outsourced the entire process. That is good news. If the vehicle fails I can now grease a few palms for a pass!

Congrats to Roberto Garza of the Chicago Bears. He signed a one year contract and will be returning for his 13th NFL season. He's been the starting center for the last 3 years.

The banking industry posted record profits for the 4th quarter of 2013. Yet, most of the major banks have announced significant layoff plans for 2014. The bank CEO's whine about too much regulations and that nobody likes them. I've yet to see anybody shed a single tear for these greedy turds.

Tesla Motors (TSLA) is going to build a Gigafactory. Eventually this factory could produce more lithium-ion batteries than the rest of the world combined and at a much lower cost. These batteries are basically the power of the Tesla automobile. Naturally the stock price has soared this week. Critics scoffed and now call Tesla a battery company.

Tesla's business model is to eliminate most of the middle men and do all of the work themselves. This creates a higher profit margin. They actually own all of their own dealerships so you just deal with Tesla instead of some crooked dealership.

This Gigafactory will employ approximately 6500 people and increase vehicle production to 500,000 by 2020. Arizona, Texas, New Mexico and Nevada are vying for this factory location. I would be very surprised if Texas makes the final cut and gets chosen. Under the wisdom of Governor Rick Perry, Texas enacted legislation to make it illegal for Tesla to have direct dealerships in Texas. People in Texas actually have to go to another state to purchase a Tesla. I hope those campaign donations from the dealership owners were worth 6500 great jobs for the good people of Texas!


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