Tesla CEO says company to bear up to half cost of battery factory

DETROIT Thu Jul 31, 2014 6:29pm EDT

DETROIT (Reuters) - Electric carmaker Tesla Motors Chief Executive Officer Elon Musk said on Thursday that he expects his company to bear between 40 percent and 50 percent of the cost of a lithium-ion battery plant, the Tesla Gigafactory.

Tesla’s partner in the plant, Panasonic Corp, will bear between 30 percent to 40 percent of the cost to bring the factory up to what Musk called “serious” production, and the state where the plant is placed will pay for about 10 percent of it, he said. He said the company has not yet chosen which state will host the plant.

“Other industrial partners” will provide between 10 percent and 20 percent of the cost, Musk said on a conference call with Wall Street analysts after the company reported a second-quarter loss of $61.9 million.

Earlier on Thursday, Panasonic confirmed that it would invest in the planned factory.

(Reporting by Bernie Woodall and Paul Lienert in Detroit; Editing by David Gregorio)