Computer model of what the (currently under construction) Gigafactory will look like. Source
Tesla’s new Gigafactory is located in Sparks, Nevada and will be used for the mass production of the companies’ batteries. The batteries used in their cars are currently the area holding the company back from creating more cars at a cheaper price, as batteries are difficult and expensive to produce.
Tesla hopes to begin production of its lithium ion batteries here in 2017 with full production by the year 2020. When the factory reaches its full production potential, Tesla hopes to create 500,000 cars per year, which will require a lot of lithium ion batteries.