Buzz building over Tesla gigafactory

|About: Tesla Motors (TSLA)|By:, SA News Editor

This is the week that Tesla Motors (TSLA +3.6%) is expected to make an announcement on its "gigafactory" for battery production.

The cost of the facility is forecast to be in the billions, but estimates on the impact on Tesla's revenue stream and the expense to build each battery vary widely. Opinion is also divided over what the driving range will be for the gigfactory-produced vehicles.

One thing both Tesla supporters and detractors agree on: The direction of the gigafactory will determine if Tesla can mass produce vehicles in the $30K-$40K range.

The Phoenix Business Journal reports the EV automaker has been scouting potential sites in Arizona and other places in the Southwest for the gigafactory, while the Reno Gazette notes Tesla execs have been snooping around the northern part of Nevada.

Most analysts think the site will be in California in order to reduce transportation costs for the company.