Tesla Invests $3.6 Billion in Two New Factories in Nevada to Build Stock Shapes and Cells • Zoo House News
Tesla is investing $3.6 billion to expand its existing Gigafactory in Nevada. The company today confirmed earlier White House reports and said it will build two new manufacturing facilities in the state — a 100 gigawatt-hour battery cell factory and Tesla’s first high-volume semi-truck factory.
The new factories, which will have a combined area of 4 million square feet, will expand Tesla’s existing Gigafactory in Nevada, which houses the Model 3 electric motors and battery packs, as well as Tesla’s Powerwall and Powerpack energy storage products. The facilities will be located east of Sparks in the Tahoe-Reno Industrial Center.
Finally, in December, Tesla unveiled the first production versions of its long-delayed electric semi during an event at the company’s Gigafactory in Sparks where the first semis were handed over to Pepsi, Tesla’s first semi customer. The new factory is to supply semi-finished products in large quantities.
The new cell factory will produce Tesla’s 4680-type cylindrical lithium-ion battery cells with a capacity to produce enough batteries for 2 million light-duty vehicles annually, the company said.
The news comes a day before Tesla reports its fourth-quarter and full-year 2022 results, in which Tesla is expected to address missed fourth-quarter delivery estimates, the impact of vehicle price cuts on margins, and perhaps even claims that CEO Elon Musk has been distracted by his overhaul of social media company Twitter. Musk is also in the midst of a securities fraud lawsuit over his infamous 2018 “funding secured” tweet to take Tesla private, which ended up not happening.
Tesla’s recent capital push in Nevada reflects the $3.5 billion investment in its first Gigafactory in Sparks in 2014. Since then, the company has invested a total of $6.2 billion in Nevada, building a 5.4 million square foot facility that has produced 3.6 million power units, 1.5 million battery packs and 7.3 billion battery cells, according to Tesla. The company said the new facilities will create 3,000 jobs in the area.
Tesla has not announced groundbreaking for the new factories or the start of cell and semi-finished product production. It’s likely that cells produced there will go directly to Semis, as Musk previously said supply chain challenges and limited battery cell availability contributed to the truck’s multiple production delays. Musk originally unveiled a prototype Class 8 electric truck in 2017 and planned to start production in December 2019, but Tesla didn’t manage to start production of Semis until October 2022.