Tesla announces $3.6b Semi, 4680 battery factories in Nevada but questions abound

Tesla announces new battery and Semi factories in Northern Nevada
The automaker is bringing new factories with a $3.6 billion investment

Tesla announces that it is going to build its new battery and Semi factories in Northern Nevada. There will be a $3.6 billion investment in these factories which actually seems like completing the Gigafactory Nevada to its original size. The EV maker already invested $6.2 billion in the Nevada factory and hired 11,000 employees.

Tesla announces $3.6b Semi, 4680 battery factories in Nevada but questions abound
Image credits- Electrek

Around 17,000 local construction jobs were created while the factory was being made. So far, it produced 7.3 billion battery cells, 1.5 million battery packs, 3.6 million drive units, and 1 million energy modules. These numbers are higher than Tesla’s original 2014 plan, which was to spend $3.5 billion on a factory to produce 35 GWh of batteries annually, which would then hire 6,500 employees. Since then, the EV market has expanded rapidly, which means 35GWh is still not enough to fulfill global demand for Tesla’s EVs.

Tesla stated, ” 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 the capacity to produce enough batteries for 2 million light-duty vehicles annually), as well as our first high-volume Semi factory.” Tesla’s announcement is unclear about whether these factories will still be on the same property as its current gigafactory, which is still about 60% complete when comparing renders to the current status of the building.

EV factories

Judging by the new render, these new factories may be in the same building. Compared to the existing building, which has an L-shape, and the original and new renders of the building. The announcement mentions that some of the $3.6 billion will be spent to continue growing the gigafactory, but also build two new factories. Previously, Electrek reported that Tesla was building a production line for the Tesla Semi in a new building near Gigafactory Nevada, so we’re not sure if it’s changing plans and will bring all this production under the same roof, or continue expanding that new building nearby. The new render shows assembled Tesla Semis coming off the line on the left side of the building, which could suggest their assembly will be done under the same roof – or maybe it’s just a render.

This announcement comes the day before Tesla’s earnings report, which is certainly interesting timing. Tesla set a record for deliveries with 405,000 vehicles delivered in Q4 and 1.3 million in 2022, though the Q4 number came in under expectations. Near the end of the quarter, Tesla started offering discounts and has recently drastically cut prices, signaling that it needed to stoke demand a little after more than a year of significant price increases while EV demand skyrocketed.