Tesla has submitted an application to expand its gigafactory in Texas with an investment totaling $775.7 million, according to recent government filings.
The EV business aims to construct five new facilities at its Austin location, including a cell test lab and a unit called "Cathode" in accordance with submissions made by the company on the website of the Texas state department of licensing on Monday and Tuesday.
A few days before the Austin expansion, it was reported that Tesla promoted Tom Zhu, its China CEO, to assume direct management of the automaker's U.S. assembly plants as well as its North American and European sales activities.
Deliveries made by Tesla during the fourth quarter fell short of expectations. Additionally, the corporation has extended the decreased output it started in December by running a reduced production schedule at its Shanghai plant through January.
The most expensive automaker in the world has been dealing with manufacturing and logistics issues related to COVID at its important Shanghai center along with mounting demand worries. On March 1, the company is anticipated to have its investor day at the Austin plant, where it is anticipated to announce plans for capital allocation and expansion.
Additionally, Tesla has a production plant in Fremont, California, and a gigafactory in Nevada. Tesla could soon announce the construction of a gigafactory in the state of Nuevo Leon in northern Mexico, with an initial investment of between US$800 million and US$1 billion, according to a December story in the local newspaper Reforma.
According to documents submitted to the Texas Department of Licensing and Regulation on January 9, Tesla submitted applications for four new projects. According to the papers, the projects are submitted separately since they will enlarge four different facilities. The projects for "Cell 1," "Drive Unit," "Cathode," and "Cell Test Lab" were registered by Tesla.
The four new facilities will cost a total of $716,700,000 to build, with the "Cell 1" facility's development expected to be the most expensive at $368,000,000. The Drive Unit and Cell Test Lab buildings will cost $85,000,000 and $3,700,000, respectively, while the Cathode building will cost $216,000,000.
The cell facility will support the automaker's efforts to increase the production of electric vehicles in the country while also assisting Tesla in reducing its reliance on outside suppliers. Tesla currently has many agreements for the supply of battery cells, most notably with Panasonic in the U.S.
