The Gigafactory that will make or break Tesla: As 198,000 people preorder Elon Musk's new car, drone footage reveals the world's biggest building where its batteries will be made

When it's complete, Tesla's Gigafactory in the Nevada Desert will have the largest footprint of any building in the world.

At the Model 3 launch yesterday, founder Elon Musk said the $5 billion structure will produce 500,000 lithium ion batteries each year to meet demand.

And the pressure is on. So far, 198,000 people have pre-ordered the Model 3 in less than 24 hours since launch - and demand is expected to remain high.

Now, new drone footage has revealed progress on construction of the Gigafactory in stunning high-definition. 

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When it's complete, Tesla's Gigafactory in the Nevada Desert will have the largest footprint of any building in the world. At the Model 3 launch yesterday, founder Elon Musk said the $5 billion structure will produce 500,000 lithium ion batteries annually to meet demand. Now, new drone footage has revealed progress on construction of the Gigafactory in stunning high-definition

The 4k footage shows little progress on the exterior of the building, but Tesla appears to have been working on the area around the plant.

Filmed using a DJI Phantom 4 drone, it reveals more building sections covered in white reflective roofing, as well as a paved parking lot.

Musk said the Gigafactory and its Fremont facility would produce more lithium ion batteries in a year than were produced in the entire world in 2013.

In terms of sheer size, the Gigafactory is second in volume only to Boeing's airplane factory in Washington. 

But when it comes to how much ground it covers, Tesla's upcoming factory is the largest in the world. 

'This is a vital element,' Musk said in his presentation of the Model 3. 'To give you a sense of scale, the Gigafactory will have the largest footprint of any building of any kind.'

The 4k footage shows little progress on the exterior of the building, but Tesla appears to have been working on the area around the plant

The pressure is on, with 198,000 people pre-ordering the Model 3 in less than 24 hours since launch. Demand is expected to remain high

Filmed using a DJI Phantom 4 drone, it reveals more building sections covered in white reflective roofing, as well as a paved parking lot

'Our Fremont factory in the past has actually made 500,000 cars a year, so we're confident Tesla can achieve that in the future in terms of vehicle production,' he said.

'I think that's going to be, I wouldn't say straight forward, but very doable.

'But what about batteries? In order to produce half a million cars a year, we basically need to absorb the entire world's lithium production 'That's the entire reason we're building the Gigafactory. 

'It will produce more lithium ion batteries than all other factories in the world combined...We will also be producing the most advanced cell in the world.'

The Gigafactory is now producing battery packs but not yet creating the cells inside, Musk revealed.

The huge project is part of the billionaire's plan to drive down the cost of electric cars and create home battery packs to provide cheaper electricity.

The Model 3 costs $35,000 in the US - half the baseline price of the 2015 Model S. Its lower price tag is thanks largely to cheaper battery packs that can be created by the Gigafactory.

Tesla previously assembled its battery packs with cells made in Japan by Panasonic. But now the companies have teamed up on creating the factory in Nevada.

The latest video follows footage, uncovered by Bloomberg last year, which showed how construction work was progressing.

Musk tweeted at the time that what the drone footage shows is 'not the full Gigafactory, it is just the pilot plant (1/4 size).'

Site preparation began in July at an industrial park along U.S. Interstate 80 15 miles east of Sparks, a Reno suburb.

The aim is to produce enough batteries to power 500,000 vehicles a year when it is fully completed and produce a power source that can also be installed in gadgets such as toys and drones.

Production is currently based in Freemont, California, but the plant does not have the capacity to serve the company's future production needs. 

The site will also help produce a 'revolutionary' $3,000 (£1,980) battery which Musk claims can run an entire home for eight hours.

Musk introduced the Powerwall device at a press conference in California last year and said the technology could 'change the world'.

Since it unveiled its home battery plans, Tesla says it has been so overwhelmed by initial demand that it is now exploring whether it can expand production at the battery Gigafactory. 

The Gigafactory is now producing battery packs but not yet creating the cells inside, Elon Musk revealed. The huge project is part of the billionaire's plan to drive down the cost of electric cars and create home battery packs to provide cheaper electricity

Tesla previously assembled its battery packs with cells made in Japan by Panasonic. But now the companies have teamed up on creating the factory in Nevada

Queues for the Model 3 were forming all over the world ahead of its launch yesterday (left). Elon Musk is pictured right during the unveiling in which he spoke about the Gigafactory's important to the Model 3 roll out

Last week, Tesla said that it is ahead of its production and construction schedule for the Gigafactory in Reno, Nevada.

Even though Reno has attracted big businesses such as Apple and Amazon, there is concern the city's infrastructure will not be able to cope with the increase in demand. 

But it recently emerged that the Nevada battery plant is creating jobs more slowly than first projected, although state officials say it's still making satisfactory progress.

A progress report issued last week by the Nevada Governor's Office of Economic Development said there were 272 people working at the Tesla and Panasonic factories at the end of the year. 

That's lower than the 700 jobs initially projected for the end of 2015, according to a September 2014 report available to state lawmakers when they were deciding whether to approve a $1.3 billion tax incentive package for Tesla.

'In its application to the state for abatements, the company refined its annual job creation projections to more accurately reflect that the construction of the gigafactory would be completed in phases instead of all at once as the state's economic impact report initially projected,' economic development office spokeswoman Jennifer Cooper said in a statement. 

'While this will be reflected in the quarterly reports that the company submits to GOED, it does not alter the anticipated investment of at least $3.5 billion or the employment of 6,500 once the factory reaches full production.'

Nevada landed the factory after an intense competition between several states. 

Economic development officials said the Gigafactory has started shipping out battery packs and powerwalls.

Tesla reported it had invested $374 million in capital in Nevada so far, below the early prediction of $1 billion by the end of 2015. 

During the last three months of 2015, there were an average of 894 construction workers at the site each week — 74 percent of whom were Nevada residents  

anticipated Model 3, hours after fans around the globe already began lining up at its stores to order the luxury brand's new affordable vehicle. The Model 3 starts at $35,000 in the US - half the baseline price of the 2015 Model S

Boss Elon Musk dramatically revealed a red, silver and matte black model of the electric car after a lengthy talk that covered the company's dedication to the environment and journey to affordability

The $5 billion Tesla structure is hoping to produce 500,000 lithium ion batteries annually, making it the biggest battery factory in the world. Pictured is drone footage from last year, showing the early stages of construction 

The Gigafactory is being built at the Tahoe Reno Industrial Center in Storey County, Nevada. On the right is an image taken from the hills surrounding the complex reveal its isolation and scale

WHAT YOU NEED TO KNOW ABOUT TESLA'S MODEL 3 UNVEILING 

When will it go on sale?

Tesla has said it expects to start Model 3 production at its Fremont, California, factory at the end of 2017. 

But the company has a history of delays. The Model X, which went on sale last fall, was initially due to go on sale in early 2014. 

Musk said last month that the Model 3, unlike the Model X, is designed for 'ease of manufacturing.' 

Still, some analysts are doubtful. Morgan Stanley auto analyst Adam Jonas thinks Tesla won't start building the Model 3 until the end of 2018.

At the end of his speech Musk revealed that the Model 3, the fourth by the brand, was an instant success - with a total number of orders surpassing 115,000 in 24 hours 

Who are its competitors? 

General Motors is set to start selling the Chevrolet Bolt electric car at the end of this year, a full year before the Model 3. 

The Bolt will have a similar price tag and a 200-mile range. Hyundai's Ioniq, which has a 110-mile electric range and could match Tesla on price, goes on sale this fall. 

Audi will follow with an electric SUV in 2018. Musk said last month he's not worried. 

He thinks the Model 3 will compete most directly with small luxury cars like the Audi A4 and the BMW 3 Series.

How did Tesla make the Model 3 less expensive? 

Cheaper batteries. Tesla previously assembled its battery packs with battery cells made in Japan by Panasonic Corp. 

But Tesla and Panasonic are building a massive, $5 billion factory in Nevada which will supply batteries for the Model 3.

Tesla says the scale of the factory will lower the cost of its battery packs by 30 per cent. 

An artist's impression shows what the site could look like when it is finished. Nevada will also benefit from an investment in roads leading to the facility and potential to surround it with other ventures

The company recently released a video showing the Model X 'getting its wings', with a series of robots attaching its doors. Both the Model S and Model X are currently being made the Fremont factory on two separate production lines

It is one of the most advanced factories in the world. The Tesla Factory in Fremont, California, contains 5.3 million square feet of manufacturing and office space. Everywhere you look, robots are churning out cars in precisely synchronised movements