The CEO of SpaceX, Elon Muskstakes his biggest bet in his future project the gigafactory. First announced last fall, the gigafactory is a planned facility that would allow Tesla to manufacture mountains of lithium ion batteries to be used in both Tesla's electric vehicles, as well as power storage units sold by Tesla's sister company, SolarCity. With this his both companies Tesla and SolarCity are at risk depending on the outcome of the project.

As per the reports the most expensive part of a Tesla is batteries which is currently purchased from Panasonic. The cost of Vehicles is directly proportional to the batteries price so according to the reports gigafactory will bring down battery prices by 30% which will save a big amount of cost to the company.

“The company won't be able to function at all if it doesn't build a gigafactory and will ultimately need hundreds of them. We can’t figure out any other way to scale the Wall Street,” Journal's Cassandra Sweet quoted Musk as saying.

“So far now the project is working fine but the time may be different, as there seems to be a huge amount of doubt in the industry as to whether Tesla will be able to meet the targets it has set for the gigafactory. Most investors we speak with believe such audacious vertical integration is hubris, adding significant risk to the Tesla story," Jonas wrote in a recent note.