Tesla will open a Texas factory as critical to growth industries.
On Thursday, Tesla will have an event to commemorate the inauguration of its $1.1 billion facilities in Texas. In addition, it would aid in the ramp-up of production of electric vehicles and batteries, which are essential to its expansion plans.
The “Cyber Rodeo” event comes after billionaire CEO Elon Musk startled the market this week by announcing that he had purchased a 9% interest in Twitter.
Also, he will join the social media platform’s board of directors. find out more
When combined with a planned Berlin factory, the Austin facility is intended to increase the company’s yearly manufacturing capacity to 2 million vehicles.
Tesla also stated that it would increase output at its California and Shanghai operations. Tesla has stated that it expects a 50 percent increase in yearly deliveries over the next few years.
“There will always be the possibility for some bumps along the road,” Morningstar Analyst Seth Goldstein said, adding that Tesla will eventually overcome any ramp-up challenges as it did with Model 3 manufacturing some years ago.
Musk has billed the launch event as the world’s largest party. Still, a Travis County fire marshal said Tesla had notified the county that attendance would likely be under 15,000 people.
According to Tesla, the invite-only event, which begins at 4 p.m. local time on Thursday, will include interactive tours, food, and live entertainment.
Tesla has indicated that to minimize production time and costs, it would employ massive casting presses to create the back and front of the cars at new plants.
Tesla stated in January that it would begin delivering Texas-built Model Ys using its in-house 4680 batteries by the end of March. However, it is unclear whether this has occurred.
“One of the issues they’re facing right now is that Tesla hasn’t been able to begin volume manufacturing of its 4680 cells,” said Sam Abuelsamid of Guidehouse Insights.
“As a result, the Texas facility will most likely take some time to ramp-up to full capacity.”
To fend off increased competition from rivals, Tesla is anticipated to create lower-range, lower-priced variants of the Model Y at its Texas manufacturing.
It has received certification from the United States Environmental Protection Agency for two new Model Y variations, with driving ranges of 244 and 279 miles, respectively, compared to the current Model Y’s 330-mile range.
Due to component shortages, Tesla has postponed the Cybertruck and Semi vehicles until next year.
Tesla is struggling to keep up with demand due to supply chain issues. Thus the new plants are going online.
Tesla had a record first-quarter delivery rate, but a recent rise in COVID-19 cases in China prompted the company to briefly halt production at its Shanghai facility for several days.