Tesla’s decision to expand its gigafactory in Nevada comes as the company continues to see a high demand for its electric cars and trucks. Tesla has experienced great success with it’s Model S sedan, which is now the best-selling plug-in car in the U.S., while also launching its Model X SUV last year. The new factory will help Tesla meet growing demand for electric vehicles, while also developing new technologies to improve production of both models.
The new factories are expected to create thousands of jobs in the region and produce batteries for Tesla’s electric cars as well as energy storage products.
Tesla’s electric Semi is finally available to the public after years of delays and a $5 billion investment. The new electricSemis are in high demand, with Pepsi the first customer to receive one. The factory that Tesla built in Sparks is expected to deliver high volumes of Semis, so customers shouldn’t have to wait long for their orders
For years, Tesla has been searching for a reliable and cost-effective way to manufacture lithium ion battery cells. The new cell factory will enable the company to produce its own cells, which will reduce manufacturing costs and improve quality.
On Wednesday, Tesla stock prices were expected to drop as the company released its fourth-quarter and full-year 2022 earnings. Despite missing expectations, CNBC reports that Tesla is still expected to deliver more vehicles than ever before despite a weaker than anticipated economy. In addition, the effects 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 are all likely to be addressed during the earnings report. This will be a busy week for Musk as he is also in the middle of a securities fraud trial over his infamous 2018 “funding secured” tweet to take Tesla private, which did not end up happening.
Tesla’s new Nevada capital push is likely in part a response to General Motors’ plans to open a $1 billion factory in Lordstown, Ohio. If successful, the Tesla Factory could be on the chopping block.
Given the production delays for Tesla’s electric truck, it is likely that the new factories will mainly produce Semis. The trucks are notoriously difficult to produce and due to limited availability of battery cells, Tesla has had to repeatedly delay their release. If things go according to plan, the new factories should start producing Semis in October 2022, which would be six months after originally planned.
