Tesla reportedly filed more than $716 million in new projects to expand its Gigafactory Texas by 1.4 million square feet, as per Reuters.
Interestingly, this project represents one of Tesla’s major development initiatives after constructing the $5.5 billion gigafactory in Germany in 2022.
Filings
Tesla’s filings with the Texas Department of Licensing and Regulation indicated that the American automaker applied for five new projects on January 9-10.
The filing included the development of a cell test lab and a unit named “Cathode” in the Austin site.
Intriguingly, Reuters pointed out that the filings for expansion occurred days after it reported the promotion of China chief Tom Zhu for Tesla’s international operations. It covers Tesla’s US manufacturing plants along with the North American and European sales operations.
Austin Business Review first reported that the planned facilities would expand Tesla’s Gigafactory Texas by 1.4 million square feet. The report also claimed that the automaker might commence the development by the end of January.
Challenges
The EV giant has been enduring logistics and production issues at its major Shanghai hub due to COVID-19. Numerous people have also speculated that problems with demand have hampered Tesla’s performance.
That said, Tesla’s deliveries during the fourth quarter were less than anticipated. Furthermore, Giga Shanghai’s operation has also been operating on a decreased production schedule through January.
Nonetheless, at the Austin facility, Tesla might announce some good news and improvements at its upcoming investor day on March 1.
Tesla may have significant challenges, but it should be remembered that the company is enormous. The fact that the top manufacturer must deal with these difficulties is natural.
