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Tesla (TSLA) announces $3.6 billion expansion in Nevada for battery & Semi truck production

The expansion will look to produce the 100 GWh 4680 cells, which are more environmentally friendly than other alternatives.

Sam Chandler

January 24, 2023 4:35 PM

Tesla

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Tesla, the company behind one of the most well-known electric vehicles in the world, has made plans to expand one of its massive Gigafactories. This expansion will see the company increasing its production of batteries and its Semi truck.

Tesla announced in a post on January 24, 2023 that it would be investing a further $3.6 billion in its Nevada Gigafactory. The press release laid out the plans for how these funds would be spent.

We will be investing over $3.6 billion more to continue growing Gigafactory Nevada, adding 3,000 new team members and two new factories: a 100 GWh 4680 cell factory (with capacity to produce enough batteries for 2 million light duty vehicles annually), as well as our first high-volume Semi factory.

The additional 3,000 new team members will lift an already massive workforce. The statement notes that Tesla hired more than 11,000 employees in order to hit some impressive production figures. These figures include the production of 7.3 billion battery cells equating to 37 GWh+ annually, which exceeded the company’s target of 35 GWh of batteries annually.

As for the batteries being produced at the new expansion, the 100 GWh 4680 cells are more environmentally friendly, using fewer rare materials. Specifically, the cells use high-nickel cathodes instead of cobalt – a resource that is not only tough to sustainably source but also a hazardous material.

The expansion will also see Tesla producing more of its Semis. With 500 miles of range, these new electric combination trucks look to work their way into the distribution of goods across the United States. It was just in October of 2022 that Musk announced Pepsi would be receiving its first Semi trucks in December.

Outside of the expansion of the Nevada Gigafactory, Tesla has reportedly filed for an expansion of its Texas Gigafactory. At the time, the $368 million filing was the company’s largest, however, this Nevada expansion leaves that in the dust.

With Tesla (TSLA) expanding its Nevada Gigafactory, which will see more batteries produced, it will be interesting to see whether the company lowers prices again. Recently, the company lowered its Model 3 and Model Y prices, with the cheapest vehicle being the Model 3 for $36,490 USD once all the tax breaks were factored in.

Sam Chandler

Head of Guides

Hailing from the land down under, Sam Chandler brings a bit of the southern hemisphere flair to his work. After bouncing round a few universities, securing a bachelor degree, and entering the video game industry, he's found his new family here at Shacknews as Head of Guides. There's nothing he loves more than crafting a guide that will help someone. If you need help with a guide, or notice something not quite right, you can message him on X: @SamuelChandler