With their most recent statement, electric vehicle industry leader Tesla is causing quite a ruckus across the globe with their plans to expand its assembly factory in Nevada.
They plan to spend a stunning $3.6 billion on a new plant that will produce 4680 lithium-ion cells in addition to a factory that will be dedicated to the production of their highly awaited Semi truck. This decision should not come as a surprise given that Tesla is well-known for constantly pushing the limits of what is possible and thinking creatively outside the box.
But why are people making such a fuss about these new battery cells? They are around the size of a beer can, and it is anticipated that they will have a higher energy density as well as a lower cost than their existing 2170 cells. This is a prerequisite for Tesla to be able to power heavier new models like the electric big rig and the Cybertruck pickup, both of which may be released this year, thus it is a game changer for the company.
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This additional investment raises the total facility in the complex to about $10 billion since 2014, making Tesla's Gigafactory in Sparks, Nevada, the largest battery production operations in the United States. Tesla already boasts the largest battery production operations in the United States.
However, they are not the only ones in the game, as competitors such as General Motors, Ford, Hyundai, Toyota, Volkswagen, and other automakers are also pouring billions of dollars into new domestic battery and materials plants. These automakers are doing this in order to take advantage of incentives offered by the Biden Administration that are aimed at turning the United States into a powerhouse in clean vehicle technology.
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Tesla has stated that the new battery line will eventually be capable of producing 100 gigawatt-hours of 4680 cells annually, which is sufficient to power 2 million electric vehicles. According to the statement, this is about three times what the Gigafactory can produce at its present capacity of 37 gWh. This represents a significant increase in manufacturing and demonstrates Tesla's dedication to its mission of making all-electric vehicles more affordable and accessible to the general public.
But this isn't just about the batteries; in addition to the 11,000 people who already work there, Tesla aims to hire an additional 3,000 people to work at its new battery and truck factories. This is fantastic news for anybody looking for work, as Tesla is regarded for being an employer that offers excellent perks and a pleasant working atmosphere.
The announcement of the investment comes a day before Tesla releases its results for the fourth quarter and full year for 2022, and it comes at the same time that Musk is testifying in a class-action lawsuit in federal court in San Francisco over his comments about having "funding secured" to take the automobile manufacturer private in 2018.
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Despite this, Musk is optimistic on the company's prospects, saying: "We anticipate reaching even higher levels than these. I believe that the amount of money we invest will ultimately exceed $4 billion. We are expanding our manufacturing facility by an additional four million square feet. At least three thousand additional direct jobs will be created."