Tesla applies for $776M expansion of Texas gigafactory
The company has also hit a number of production snags at its Shanghai facility last year
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Tesla is planning to invest nearly $776 million to expand its gigafactory in Texas, according to online filings with the state.
The plan will include adding five new facilities to the company’s Austin site, including a cell test lab, a unit named "Cathode," and drive unit manufacturing facilities, the filings say.
The Tesla Inc. logo is seen on the grille of a Model X electric vehicle at the Moscow Tesla Club in Moscow, Russia, on Friday, July 20, 2018. T (Photographer: Andrey Rudakov/Bloomberg via Getty Images / Getty Images)
Construction on some of these projects is scheduled to start in a matter of weeks.
The move would mark one of the company’s largest expansions since building its $5.5 billion gigafactory in Germany last year.
The Texas gigafactory, opened in April of last year, has more than 10 million square feet of floor space and is used to manufacture some Tesla Model Y vehicles.
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The expansion also comes on the heels of a challenging year for the company. The company’s stock value has plummeted by more than 71% since reaching an all-time high in November.
The company has also hit a number of production snags at its Shanghai facility as it faced COVID-induced lockdowns and other logistics problems.
Fourth-quarter delivery numbers also came in below analysts’ estimates. The Jan. 2 release showed deliveries for the electric vehicle maker missed by roughly 13,000. According to the report, Tesla delivered 405,000 vehicles over the quarter, falling short of consensus forecasts of 418,000.
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Tesla did not respond to FOX Business’ request for comment.
FOX Business’ Joe Toppe and Reuters contributed to this report.