By 2030, Tesla has plans to grow vehicle production to 20 million units a year. For reference, currently, the number one vehicle manufacturer in the world is Toyota, which produces 10 million vehicles annually.
Meaning, Tesla’s plans for this decade will not only make it the number-one vehicle manufacturer in the world but, will also see it producing twice as many vehicles as the current leader.
And if we compare Tesla’s 2030 plans to the company’s 2022 performance when the EV maker delivered 1.3 million vehicles, that means in the next 8 years, Tesla plans to grow vehicle production by more than 15 folds.
This is a highly ambitious goal and will require the Tesla team to tackle numerous challenges. And of the many challenges, Tesla has identified scaling battery production to terawatt hours as the main roadblock restricting the EV maker’s ability to scale vehicle production.
until recently, Tesla has been utilizing batteries it purchases from the biggest cell manufacturers in the world including Panasonic, CATL, LG, and Samsung to power its vehicles.
However, to be able to take its destiny into its own hands, Tesla has also forayed into the battery manufacturing business with the company’s revolutionary 4680 cells. And the EV maker has been making several strategic moves in this direction.
The 2 new plants, in addition to having a long-term vehicle production capacity of over 1 million vehicles a year, are also setting up 4680 cell manufacturing sections which are expected to each output more than 100GWh 4680 cells per year.
Although incredible on its own, this is just the beginning. In a surprise move last week, Tesla announced that it will be building a factory in Nevada. The plant will be built as an extension to Tesla’s Reno Nevada factory where the EV maker operates in conjunction with Panasonic and produces drive unit components for the Model S, 3, X, & Y.
The total cost of the new factory is expected to be around $3.6 billion, however, in a speech he gave while announcing the plant, Elon Musk has said the investment number is conservative and is likely to increase.
According to Tesla, the new plant is expected to have a production capacity of 50,00 Tesla semis a year, and if everything goes according to plan the new factory could reach this lofty goal as soon as 2024.
Tesla has also revealed that the Giga Nevada expansion project, in addition to semi-production, will also produce 100GWh of 4680 cells. In the official press release for the project, Tesla says 100GWh is enough to build 2 million compact vehicles.
This is all beyond impressive on its own, however, today Elon Musk has come out and highlighted some facts about the plant which make the Giga Nevada expansion even more compelling than it already is.
Musk after sharing a rendering of what Giga Nevada will look like when complete, added by writing, the plant, even before the expansion project, is already “the biggest battery cell, pack & electric motor factory in Americas.”
It’s already the biggest battery cell, pack & electric motor factory in Americas— Elon Musk (@elonmusk) January 31, 2023
Over time, we expect Giga Nevada to be almost entirely solar-powered— Elon Musk (@elonmusk) January 31, 2023
Following, Musk went on to highlight the plant’s environmental bonafide writing “over time, we expect Giga Nevada to be almost entirely solar-powered.”
The fact that Giga Nevada is the biggest battery cell, pack & electric motor factory in the Americas makes the plant already vital for Tesla’s growth. However, add to that a production capacity of 50,000 Tesla Semi’s a year and 100GWh 4680 cell production, then Giga Nevada starts to become even more integral for Tesla’s future.
Currently, Giga Nevada’s expansion project is only starting and we will be sure to keep you posted as Tesla begins the construction process in earnest.
Until then, make sure to visit our site torquenews.com/Tesla regularly for the latest updates.
So what do you think? Excited about Tesla’s expansion plans for Giga Nevada? Also, what do you make of Tesla’s “equivalent to 2 million compact cars” ester egg when referencing Giga Nevada’s 100GWh 4680 production plans? Let me know your thoughts in the comments below.
Image: Courtesy of Tesla
For more information check out: Tesla’s Megapack Batteries Outpace Car Sales
Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.