Wednesday, February 8, 2023

Tesla plans to spend more than $770 million to expand its factory in Texas

Laredo, Texas.- In order to continue expanding its vehicle factory and thus be able to provide better service, Elon Musk’s Tesla company will invest more than $770 million in its electric vehicle factory located in Austin, Texas. planning.

According to January filings with the Lone Star State Department of Licensing and Regulation, it has been learned that the company’s investment plans will focus on allocating resources for testing and manufacturing battery cells, cathodes and unit drives as well as a die shop. She thinks other things.

Work on the new infrastructure could begin this month, according to state regulatory documents.

Tesla currently produces the Model Y crossover vehicle in Texas, and the company has previously indicated its intention to begin manufacturing a pickup truck known as the Cybertruck at the plant this year. At present, it has a manufacturing capacity of over 250,000 vehicles per year at its facilities, so production will increase significantly if expansion plans are proposed.

So far, neither Elon Musk nor Tesla has reacted or commented on anything specific about the new manufacturing projects.

However, Musk mentioned last year that the company could open 10 to 12 new factories to ramp up production and meet its goal of selling 20 million vehicles by the end of the decade.

Tesla is close to choosing a location for a new factory, Musk said in December without elaborating.

“We are invoking capital at a rate that is close to the speed at which we can spend capital and not waste it,” he said.

In addition, just last week Tesla reported vehicle deliveries for 2022 that fell short of Wall Street’s forecasts. Those estimates were already lowered after the automaker said in October that it would ship fewer cars than originally projected.

Tesla also faces increasing competition in the electric vehicle market as more traditional car companies enter the fray.

Even with the above, Tesla increased vehicle deliveries last year by 40 percent over the previous year, delivering approximately 1.31 million vehicles. The company is expected to post record annual profit when it announces fourth-quarter 2022 results later this month.

Nation World News Desk
Nation World News Desk
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