Nevada Tesla battery plant ‘on track’ for 2016 startup

Tesla Motors Inc's new storage battery business could generate "a few billion dollars" in revenue in 2017, Chief Executive Elon Musk told analysts on Wednesday.

Tesla Chief Technology Officer J.B. Straubel says the Nevada battery plant is "on track" for production startup in early 2016.

Chief Financial Officer Deepak Ahuja said the company may not be cash-flow positive until early 2016. Previously, Musk said he expected to see positive cash flow by late 2015.

Musk said Tesla's California factory will have the capacity to build 1,000 Model S sedans and 1,000 Model X crossovers a week in 2016, but he expects combined production and sales of both cars may average 1,600 to 1,800 a week, or 83,000 to 93,000 for the full year.

Musk said the new Model X "may be the hardest car to build in the world."

This is a developing story. Check back for updates.