Tesla to spend $3.6 billion to ready Nevada gigafactory for electric semi truck

Tesla has confirmed $3.6 billion in investments to prepare its Nevada “Gigafactory” site for additional battery manufacturing workloads, and production of its new electric semi truck.

The facility additions will enable the plant to build the brand’s new “4680” batteries. The cells have various improvements over previous iterations, and company hopes the factory will supply enough for two million cars per year. The site will also be the first of the business’s facilities to mass produce the Tesla semi, which was soft-launched early last month. Currently, the company’s Nevada locatiomonly produces batteries and vehicle components.

Of the two additions, the electric semi truck production line is likely to be the most impactful. Tesla has long benefited from being one of the few viable electric vehicle manufacturers in the U.S., finding success in an otherwise niche market due to the absence of competent challengers. Now that it is no longer alone in the EV space with the arrival of Ford, General Motors and more, the need to solidify its identify as an innovative, forward-thinking company is higher than ever, at least if it hopes to retain its tech enthusiast customers. The battery powered 18 wheeler promises to help keep the brand at the forefront of the market, with its impressive driving range of 500 miles and roughly 40 ton weight limit.

However, while increased production is important for the brand, the new investments arrive after a year which led many to question Tesla’s leadership. The company’s stock plummeted nearly 70% in 2022, and while the company managed to break records in the fourth quarter, it was still unable to meet its delivery target for the year. CEO Elon Musk is also in the midst of a court battle over an allegedly misleading tweet he posted in 2018. While the electric semi truck is likely to be a net positive for the business, it has only appeared after roughly five years of delays. It remains to be seen how well the new facilities address the company’s perceived issues.

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