Elon Musk-led Tesla invests $3.6 billion in Nevada Gigafactory Complex, details here

Elon Musk-led Tesla has announced an investment of over $3.6 billion to expand its Gigafactory complex in Nevada. The world’s largest EV maker announced its investment plan for the Giga Nevada on Twitter. The expansion offer includes two new factories in the complex.

Also read: Sales of electric two-wheelers are expected to increase to over 22 million by 2030

“Today we are announcing $3.6 billion of new investments in Giga Nevada. – 4 million square feet of new manufacturing space – 3,000 additional team members – 2 new manufacturing facilities: a 100GWh 4680 cell factory and our first high-volume semi-factory,” Tesla tweeted.

Tesla’s Giga Nevada is one of the company’s main factories. Since opening in 2014, this plant has successfully produced 7 billion battery cells, 1.5 million battery packs, 3.6 million drive units and 1 million power modules.

News that Tesla’s new manufacturing facility in northern Nevada will now make electric semi-trucks is likely to fuel competition in the truck market, as companies like Daimler and Volvo are just beginning to sell battery-powered vehicles.

Automakers like General Motors, Ford Motor and Volkswagen had come under similar pressure as Tesla’s electric cars became a success in the US and other global markets.

While the leading truck manufacturers have declared that they are committed to producing zero-emission vehicles, the market continues to be dominated by diesel vehicles. The entry of Tesla’s truck, first unveiled in 2017, is expected to revolutionize the industry.

Investing in a dedicated semi-manufacturing facility suggests Tesla is finally embarking on mass production of its long-delayed electric truck. The company made the first semi deliveries to PepsiCo in December 2022. Tesla’s semi will have a range of 500 miles, which is good for relatively short distances.

On the other hand, the new cell plant in Giga, Nevada could produce enough batteries for 2 million light commercial vehicles annually, including 4680-cell batteries, which are a key to Tesla’s goal of halving battery costs and increasing battery production to almost 100 -fold by 2030.

Together, the new facilities will employ around 3,000 people and expand the electric vehicle maker’s Gigafactory complex. Tesla currently operates a battery joint venture with Japan’s Panasonic Corp, which makes vehicle parts and energy backup systems in Giga Nevada.

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