Tesla has recently announced a massive investment of $3.6 billion to expand its Nevada-based gigafactory, verifying the White House’s previous reports. The company remarked that they will construct two new factories in the state: an immense 100-gigawatt battery cell factory and their first high-volume Semi truck production facility.
Tesla’s latest factories totaling 4 million square feet of space, located east of Sparks at the Tahoe-Reno Industrial Center, will expand upon their already existing Nevada Gigafactory. This facility is responsible for producing Model 3 electric motors and battery packs as well as Tesla’s energy storage products such as Powerwall and Powerpack.
In December, Tesla finally made their much-anticipated Electric Semi available at a grand event held in the company’s Gigafactory. The occasion marked the first delivery of this impressive vehicle to Pepsi – its initial customer. With such an anticipated unveiling and high demand for these Semis, there is no question that the new factory can handle mass production with ease.
Tesla’s new cell factory is designed to produce 2 million light-duty vehicle batteries annually from their 4680-type cylindrical lithium-ion cells. This state-of-the-art manufacturing facility offers an unprecedented capacity for Tesla vehicles.
Just one day ahead of Tesla’s financial report for the fourth quarter and full-year 2022, a number of issues are anticipated to be discussed: missed estimates for Q4 deliveries, the impact that vehicle price cuts had on its margins, as well as potential claims about CEO Elon Musk being sidetracked by his Twitter makeover. Adding up to this is an ongoing securities fraud case related to Musk’s infamous tweet from 2018 promising secure funding for taking Tesla private – which ultimately did not come through.
Tesla’s newest investment in Nevada shines a light on the company’s commitment to its first gigafactory which opened in Sparks back in 2014. With $6.2 billion invested, this 5.4-million-square foot facility has produced an astounding 3.6 million drive units, 1.5 million battery packs and 7.3 billion battery cells! On top of all these impressive numbers is the promise of 3000 new jobs for the local area – not bad at all!
Tesla has yet to disclose when construction on the new factories is set to begin, or when production of cells and Semis will commence. The battery cells produced at these plants are expected to be utilized primarily for developing Semi trucks, since Musk had previously explained that supply chain issues and limited quantity of such elements were among the reasons why there have been numerous delays in producing this vehicle model.
In 2017, Musk unveiled Tesla’s prototype of an electric Class 8 truck and anticipated that production would begin in December 2019. However, it wasn’t until October 2022 that they were able to commence the manufacturing process for their Semis.
With these new factories, Tesla is hoping to make up for their previous delays and meet the demand for its electric truck at an even faster rate. The company has already made great strides in the automotive and energy storage industry – and this new investment is sure to take them further. This is one venture that we will be keeping our eyes on!
Shivendra Tiwari is an Engineer and an MBA in Marketing. He is the Content head at Marketing91 and a thorough Online Marketing enthusiast. Shivendra loves to follow different brands and study their Business and Marketing tactics.