Tesla Motors' future manufacturing plant known as the "gigafactory" is expected to begin production of its electric car batteries in 2017, the same year the company plans to introduce the Tesla Gen III vehicle.

By making batteries for Tesla's cars in-house, the company should be able to significantly reduce the cost of its vehicles, as the most expensive part of the car is the battery pack itself.

The infographic below from Visual Capitalist explains how Tesla hopes to compete with conventional cars with help from the gigafactory.