Tesla’s massive $5 billion Gigafactory has just recently started churning out lithium-ion battery cells to power its electric vehicles. But that’s potentially not the only component which will be manufactured at this factory in the coming months. The automaker also plans to produce some primary components for its upcoming budget Model 3 vehicle.
According to Fortune, Nevada Governor Brian Sandoval at a state meeting last night announced the expansion plans for Tesla’s Gigafactory. He thanked the automaker for ‘doubling down’ on their efforts towards the establishment of the said factory on the outskirts of the state. He further added that it has provided economic growth and created jobs in the area as well.
Then, he shed light on the automaker’s plans to increase its investment into the Gigafactory. Tesla will pump an additional $350 million to develop the production line for the manufacturing of Model 3 parts — motors and gearbox. This move will also lead to the creation of 500 new jobs, in addition to the already employed 1,000 workers (and another 2,000 construction force). Speaking about the same, Sandoval says,
Tonight I am pleased to announce that Tesla will expand its investment in Nevada by producing the electric motors and gearboxes for the Model 3 at the Gigafactory.
Though the components for the vehicles will be built at the said facilities in Nevada. But the complete Model 3 vehicle will be manufactured at Tesla’s Fremont, California factory. The initiative to move the production of basic components to the Gigafactory has been taken to make use of the scale of the said facilities. The automaker has limited space and resources at Fermont but there’s still scope for expansion of their services at Nevada.
As for the Gigafactory, Tesla has nearly 10 million square feet of space just outside of Nevada and will as much as 107 NFL Football fields. It has also partnered with Panasonic who’ll provide manufacturing parts for the construction of the batteries. The company has also agreed to create 6,500 jobs in exchange for a hefty $1.4 billion tax incentives package. However, Musk believes that the facilities will create as much as 10,000 jobs when completed. It is expected to be fully operational by 2018, and it will become the biggest facility in the world.
This development also comes on the heels of building pressure to produce 500,000 Tesla Model 3 vehicles annually. The company has said that it will deliver the said amount of vehicles by the end of 2018 — the first year. And it is now stepping up its efforts for the same. With more than a third of the facilities (including three floors) now functional, Tesla plans to speed up production to meet its sales goals. The company had faltered on the same this last year — delivering 76k vehicles in comparison to the promised 80k.
