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Tesla applies for $776M expansion of Texas gigafactory




Tesla plans to invest nearly $776 million to expand its gigafactory in Texas, according to electronic filings with the state.

The plan would include adding five new facilities to the company’s Austin site, including a cell testing lab, a unit called “Cathode” and drive unit manufacturing facilities, the filings said.

Tesla applies for 6M expansion of Texas gigafactory

The Tesla Inc. logo is seen on the grill of a Model X electric car at the Moscow Tesla Club in Moscow, Russia, Friday, April 20. July 2018. T (Photographer: Andrey Rudakov/Bloomberg via Getty Images / Getty Images)

Construction on some of these projects is scheduled to begin within a few weeks.

The move will mark one of the company’s biggest expansions since building its $5.5 billion gigafactory in Germany last year.

The Texas gigafactory, opened last April, has more than 10 million square meters of floor space and is used to produce 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 share value has fallen by more than 71% since hitting a record high in November.

The company has also hit a series of production issues at its Shanghai facility as it faced COVID-induced shutdowns and other logistical issues.

Delivery figures for the fourth quarter also came in below analysts’ estimates. The Jan. 2 release showed deliveries for the electric carmaker missed by roughly 13,000. According to the report, Tesla delivered 405,000 vehicles during the quarter, missing 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.



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