January 26, 2023

Tesla says it plans $3.6 billion expansion of Nevada gigafactory

Tesla Inc. said Tuesday it plans to spend $3.6 billion to expand its Sparks, Nev., gigafactory where it currently makes batteries and electric-vehicle parts.

The announcement came a day before the EV maker reports crucial quarterly earnings, and after CEO Elon Musk completed his third day of testimony in a trial over shareholder losses following tweets he made in 2018 about taking Tesla private.

See more: Tesla earnings will be ‘most important’ in history, Tesla bull says

In a blog post Tuesday, Tesla said the expansion will include two new factories, one for battery cells and one to mass produce its Semi electric truck, and will add 3,000 jobs.

Tesla said the battery facility would have capacity to produce “enough batteries for 2 million light duty vehicles annually.” In early January, Tesla said it delivered about 1.31 million vehicles in 2022. Analysts expect Tesla to increase deliveries to about 1.92 million in 2023.

The company did not give a timetable for the project.

Earlier this month, Tesla applied for a nearly billion-dollar expansion of its factory in Austin, Texas, according to government filings.

Tesla shares
TSLA,
+0.10%

fell 2% in after-hours trading Tuesday, and have sunk 53% over the past 12 months, compared to the S&P 500’s
SPX,
-0.07%

8% decline over that time.

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