The new Tesla (NASDAQ:TSLA) Electric Vehicle is not merely a car…it is a whole different mind frame, a cultural movement, a new lifestyle product for the environmentally aware. People are looking down upon those not joining in the Tesla (NASDAQ:TSLA) madness. Nevada is fully immersed in this enthusiasm but rightly so. The state which is heavily dependent on tourism, this will be a very strong undertaking towards sustainable development.

The $5 Billion gigafactory which Nevada won after offering $1.3 Billion in subsidies from other states including Texas, California and Arizona was announced by the governor, Sandoval, with intense happiness. He believes Nevada won’t just be making batteries, but this denotes a major change and Nevada will never be the same again. The corporate world is all praise for Tesla (NASDAQ:TSLA) CEO Elon Musk with Berkshire Hathaway Vice Chairman calling him a genius for pulling off such a major feat.

It will take the gigafactory a total of three years in the building phase and the size is unimaginably huge! The output of this single factory will be equal to all the lithium ion batteries produced in this world, hence the name gigafactory. That is something huge and nowhere would you have seen any single facility equaling the production on this entire planet! Let’s look at what this means taking a bird’s eye view of the entire situation:

1. Is the pressure of the subsidies fair on the taxpayers? The $1.3 Billion which the state of Nevada has promised to bring this jewel of a factory in the state is nothing when compared to the total subsidies the EV’s get which is a staggering $15 Billion a year. If the EV’s are only 10% of the cars purchased annually in America, this amount is still not sustainable.

2. The oil needed for consumption in this world can never go down and this a surety. There are nearly one billion cars on the road today at this point in time and approximately two decades from now if 50% of all the new cars purchased would all be EV’s, there still would be 500 Million more oil consuming cars on the road as compared to the EV’s. In short, we need a lot more gigafactories in this world to solve the oil consumption problem. This is however, if this gigafactory successfully produces cheap batteries, but it still is a start and wishing Tesla (NASDAQ:TSLA) all the best.

3. If the batteries which Tesla (NASDAQ:TSLA) is producing for its cars don’t end up in the cars and somehow people start purchasing them for domestic use, it would distort Tesla’s (NASDAQ:TSLA) original purpose and start cannibalizing the market share of the solar electric utility companies. Consider the total annual power demand of the US, and store five minutes of that immense number into the annual production at the gigafactory battery. A mere drop in the total annual demand, but the point here being that these batteries should not seep out of the EV system.

So please Tesla (NASDAQ:TSLA), concentrate on creating new battery chemistry, instead of implementing yesterday’s technology in bigger and bigger factories.

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