Tesla Requests $776 Million to Extend Its Gigafactory in Texas

According to official papers, Tesla has submitted an application to expand its Texas gigafactory with a total expenditure of $775,7 million, marking one of its largest expansion initiatives since creating the $5.5 billion Germany gigafactory last year.

Monday and Tuesday papers on the website of the Texas state department of licensing indicate that the company plans to install five new facilities at its Austin location, including a cell test lab and a "Cathode" unit.

Reuters did not immediately receive a response to a request for comment from Tesla (NASDAQ:TSLA).

Tesla appointed its China CEO Tom Zhu to supervise the automaker's U.S. assembly plants and sales operations in North America, Europe, and South America, Reuters reported days before the Austin expansion.

Due to COVID and escalating demand worries, the most valuable automaker in the world has experienced production and logistics challenges at its Shanghai center.

During the fourth quarter, Tesla deliveries fell short of market estimates. Reuters reports that the corporation will continue a limited production schedule at its Shanghai facility through January, prolonging the lower output that began in December.

The company is anticipated to have its investor day on March 1 in Austin, where it will likely discuss its expansion and capital allocation strategies.

In addition, Tesla has a manufacturing facility in Fremont, California and a gigafactory in Nevada.

Reforma stated in December that Tesla could soon announce the construction of a gigafactory in the Mexican state of Nuevo Leon, with an initial investment of between $800 million and $1 billion.