Tesla is expanding its footprint in Nevada, making more batteries and making its new semi-truck.
Patrick T. Fallon/AFP via Getty Images
had to cut prices recently to increase demand, but that isn’t stopping it from expanding its manufacturing capacity at its Gigafactory in Nevada. Investors should be pleased, although they might have preferred the money be used on stock buybacks.
In a Tuesday blog post, the company announced $3.6 billion in investment for facilities in Nevada.
(ticker: TSLA) will build a battery factory capable of producing 100 gigawatt hours of 4680 batteries a year as well as a manufacturing plant for the Tesla semi-truck.
4680 refers to battery dimensions. Those cells have a 46 millimeter diameter and are 80 millimeters long. Most Tesla batteries come in the 2170 form factor. Those cells have a diameter of 21 millimeters and are 70 millimeters long. The larger batteries are designed to have better energy density and power-to-weight ratio.
Essentially, the bigger cells make EVs more efficient and cheaper to produce.
The Tesla Semi was unveiled in November 2017. Initial vehicles were delivered to
(PEP) in December 2022. Tesla wants to be delivering 50,000 units a year by 2024. That might generate up to $10 billion in annual sales for the company. Estimated sales in 2023 amount to roughly $100 billion.
The new investments in Nevada will create 3,000 jobs, according to the company.
Tesla’s history in Nevada stretches back to 2014 when it built a battery factory with partner