Tesla plans to spend $3.6 billion more on battery and truck production in Nevada


An aerial view of the Tesla Gigafactory near Sparks, Nevada

Bob Strong | Reuters

Tesla plans to spend $3.6 billion more on expanded battery and heavy-duty truck production in Nevada, United States company said Tuesday on social media.

According to his public statements, Tesla plans to eventually hire an additional 3,000 people in two new facilities.

It wasn’t immediately clear whether Tesla’s plans would expand the company’s manufacturing footprint beyond the property it’s already developing outside of Reno in Sparks, Nevada.

Tesla said in a statement that its new facilities will include a 100 GWh battery cell factory, where the company expects to have the capacity to produce battery cells for 2 million light vehicles per year, and a high-volume factory where it will eventually produce its Class 8 heavy, fully electric truck, the Tesla Semi.

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Tesla began building its first battery factory in Nevada in 2014. It operates this plant today with a major cell supplier, co-tenant and co-investor in the plant, Panasonic. The sprawling factory is known as GF1, Giga Nevada or the original Tesla Gigafactory. It primarily manufactures and supplies high-voltage battery packs to Tesla’s Fremont, California, vehicle assembly plant.

Nevada Republican Governor Joe Lombardo revealed details about Tesla’s plans for expansion in the state early Monday. Tesla confirmed the plans Tuesday ahead of its fourth-quarter earnings update, scheduled for Wednesday after markets close.

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Tesla CEO Elon Musk held a ceremony in Nevada in December to kick off delivery of the company’s Tesla Semi to a key early customer. PepsiCo. Tesla first announced its plans to produce the Semi in 2017, and had a targeted start of production in 2019, which was delayed to 2022. The company is not yet producing a large number of Semi trucks, but is making a few in the near future the Nevada Gigafactory.

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Tesla fans and critics have posted images of Tesla Semi trucks decorated with Pepsi Frito Lay branding they’ve seen on the road since that announcement, including some bad luck on the shoulder.

Tesla has yet to publicly reveal how much each truck costs, and has not said how much it produced or sold in its fourth-quarter delivery report.

The company is expected to share more details about its Semi program in its Q4 earnings call.



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