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Tesla to Announce a New $3.5 Billion Gigafactory in Nevada to Produce the Semi

Tesla is poised to keep Semi production in Nevada and will announce plans to build a new $3,5 billion gigafactory for that. Nevada Governor Joe Lombardo revealed the plans during his 2023 State of the Union address. He also confirmed that a Tesla official announcement would follow on January 25 during the Q4 2022 earnings call.
Tesla to announce a new $3.5 billion gigafactory in Nevada 6 photos
Tesla to announce a new $3.5 billion gigafactory in NevadaTesla SemiTesla SemiTesla SemiTesla Semi
Talks about Tesla’s next gigafactories are lingering for months, with countries across the globe competing for a location. Nevertheless, the next gigafactories would be closer to home, in Nevada. This information was revealed by Nevada Governor Joe Lombardo in his State of the State address. Tesla will make an official announcement during the Q4 2022 earnings call on Wednesday, and Lombardo will join Elon Musk on stage during the event.

“I am looking forward to joining Elon Musk and the team at Tesla tomorrow when they unveil plans to build a brand new $3.5 billion advanced manufacturing facility in Northern Nevada for the company’s all-electric semi-trucks,”
Lombardo said in his address.

According to the little information we have right now, the new production facility would be huge, considering the $3.5 billion investment planned. The investment aligns with Elon Musk’s previous announcement during the Q3 2022 earnings call. According to Musk, Tesla aims to have a production capacity of 50,000 Semi trucks per year at the end of 2024. Considering that production ramp-up would take time, 2023 is high time Tesla builds a suitable production facility for the Semi.

Nevertheless, Lombardo’s announcement surprised everyone, showing how well-kept Tesla’s plans were. Tesla started Semi assembly in a small facility close to Giga Nevada, where it also organized the December 1 Delivery Day. Nevertheless, the initial plans were to mass-produce the electric semi-truck at Giga Texas. People were expected to hear about moving production to Texas anytime soon, but it appears that the EV maker changed the plans. Now, Tesla looks fully committed to Semi production in Nevada and is building a state-of-the-art production facility for that.

Lombardo’s address did not reveal further details about Tesla’s plans, but we will find out more soon enough. Nor is it clear whether Nevada promised more incentives to Tesla to build the new gigafactory. In 2014, then-Governor Brian Sandoval wooed Tesla with unprecedented tax incentives estimated at more than $1 billion over 20 years. Tesla’s investment led to rises in income levels in Northern Nevada, which helped Nevada to weather the pandemic.

Tesla was looking to expand its manufacturing footprint in North America, but Nevada was never on the table. Instead, Mexico was on Tesla’s radar, and previous rumors hinted at advanced discussions with local authorities. Canada was also hopeful that Tesla would consider building a new Gigafactory north of the border, although no hard facts are known about such plans.



 
 
 
 
 

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