Tesla (NASDAQ: TSLA) is set to invest $3.6B to grow manufacturing capabilities in Nevada to meet high demand for Tesla semi–trucks and battery cells for 2M light–duty vehicles per year in the state. This is an unprecedented move for the electric car maker that will push production limits in Nevada.
The project will expand an existing 5.4M square-foot Gigafactory where the EV automaker makes batteries for electric vehicles. It would help Tesla come closer to meeting its goal of manufacturing 50,000 Tesla Semi trucks in North America in 2024.
Tesla, the renowned electric car company, has announced the launch of their brand new expansion in Nevada. Since 2014, Tesla has invested a total of $6.2B USD into the state. Their expansion project is expected to create 3,000 new jobs and two additional new factories, forming the “first high–volume Semi factory“ in the United States.
The primary report of Tesla’s massive expansion got here earlier this week, and it stays unclear if the state will offer tax breaks or other incentives.
The automaker’s rally has been driven by strong Q4 numbers as well, topping EPS estimates for Q4 and issuing production guidance for 2023 of around 1.8M vehicles.
Production jumped 47% Y/Y for the total yr however the margin mark missed the consensus expectation of analysts. Looking ahead, hardware-related profits are expected to be accompanied with an acceleration of software-related profits.
Tesla (TSLA) rallied about 10% in Thursday’s intraday trading, boosted by the discharge of quarterly results.