Tesla plans to build at least 3 new Gigafactories

Do you want the good news, or the bad news? Tesla’s day really depends on how you frame it.

After a less-than-stellar Q4 saw Tesla miss earnings by a wide margin, we still have reason for optimism. The disappointing earnings report took a turn for the better when Tesla representatives announced they were looking to build as many as five Gigafactories over the next few years.

The first, Gigafactory 1 in Sparks, Nevada, is set to hit full capacity at some point next year. Once at full capacity, Musk’s 13 million square foot facility, would split production between Tesla Energy storage products, and battery packs for Tesla vehicles. The plant would triple the worldwide production of li-ion batteries once it hit its stride.

To start, Tesla vehicle batteries are expected to account for two-thirds of the production. Over time, though, Musk believes “with a high degree of certainty” that Tesla energy products would generate similar revenue.

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Luckily, Musk will have space for the increased output. Company representatives today said they were finalizing locations for two additional Gigafactories, potentially three to join Gigafactory 1, and a solar plant in Buffalo (acquired in the SolarCity deal).

There’s nothing firm on the location for the next plant, but Musk said it could be somewhere in Europe and that the company will decide on a location this year.