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Gigafactory Logistics in Space and Time: Tesla’s Fourth Gigafactory and Its Rivals

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  • Philip Cooke

    (Mohn Center for Innovation & Regional Development, Western Norway University of Applied Sciences, 5003 Bergen, Norway)

Abstract

This paper concerns the spatial structure of Tesla’s four ‘gigafactories’ (‘giga’ is gigawatt hour, GWh) which are located in Tesla’s first Gigafacility (1) at Sparks, near Reno, Nevada; the Solar City Gigafactory (2) at Buffalo, New York state; the 2019 Tesla plant at Shanghai, China Gigafactory (3); and the new Tesla gigafactory Europe Gigafactory (4), which is a manufacturing plant to be constructed in Grünheide, near Berlin, Germany. The newest campus is 20 miles southeast of central Berlin on the main railway line to Wrocław, Poland. Three main features of the ‘gigafactory’ phenomenon, apart from their scale, are in the industry organisation of production, which thus far reverses much current conventional wisdom regarding production geography. Thus, Tesla’s automotive facility in Fremont California reconcentrates manufacturing on site as in-house own brand componentry, especially heavy parts, or by requiring hitherto distant global suppliers to locate in proximity to the main manufacturing plant. Second, as an electric vehicle (EV) producer, the contributions of Tesla’s production infrastructure and logistics infrastructure are important in meeting greenhouse gas mitigation and the reduction of global warming. Finally, the deployment of Big Data analytics, artificial intelligence (AI) and ‘predictive management’ are important. This lies in gigafactory logistics contributing to production and distribution efficiency and effectiveness as a primer for all future industry and services in seeking to minimise time-management issues. This too potentially contributes significantly to the reduction of wasteful energy usage.

Suggested Citation

  • Philip Cooke, 2020. "Gigafactory Logistics in Space and Time: Tesla’s Fourth Gigafactory and Its Rivals," Sustainability, MDPI, vol. 12(5), pages 1-16, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:5:p:2044-:d:329446
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    References listed on IDEAS

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    1. Enrico Moretti, 2021. "The Effect of High-Tech Clusters on the Productivity of Top Inventors," American Economic Review, American Economic Association, vol. 111(10), pages 3328-3375, October.
    2. Perkins, Greg & Murmann, Johann Peter, 2018. "What Does the Success of Tesla Mean for the Future Dynamics in the Global Automobile Sector?," Management and Organization Review, Cambridge University Press, vol. 14(3), pages 471-480, September.
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    Cited by:

    1. Marc Gilbert Joseph Buchholzer, 2022. "Review of International Comparative Management Volume 23, Issue 1, March 2022 101 Value-ADDED Automation, a Solution for the Future of Work in Automotive Manufacturing in Romania," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 23(1), pages 101-111, March.
    2. Kolahchian Tabrizi, Mehrshad & Bonalumi, Davide & Lozza, Giovanni Gustavo, 2024. "Analyzing the global warming potential of the production and utilization of lithium-ion batteries with nickel-manganese-cobalt cathode chemistries in European Gigafactories," Energy, Elsevier, vol. 288(C).
    3. Greig Mordue & Erman Sener, 2022. "Upgrading in the Automotive Periphery: Turkey's Battery Electric Vehicle Maker Togg," Development and Change, International Institute of Social Studies, vol. 53(4), pages 760-795, July.
    4. Lijun Liu & Zhixin Long & Chuangchuang Kou & Haozeng Guo & Xinyu Li, 2023. "Evaluation of the Environmental Cost of Integrated Inbound Logistics: A Case Study of a Gigafactory of a Chinese Logistics Firm," Sustainability, MDPI, vol. 15(15), pages 1-20, July.

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