Jan 24, 2023 - Economy

Tesla to build over $3 billion plant in Nevada

Three men answer questions while sitting on stools

Tesla CEO Elon Musk answers questions at the company's factory in the Reno, Nevada, area in 2016. Photo: Troy Harvey/Bloomberg via Getty Images

Tesla plans to construct a new plant in Nevada to build the new electric Tesla Semi, according to public officials.

Driving the news: Nevada Gov. Joe Lombardo (R) announced the plans Monday night — and the White House confirmed the news Tuesday.

  • "I am looking forward to joining Elon Musk and the team at Tesla (Tuesday) when they unveil plans to build a brand new $3.5 billion dollar advanced manufacturing facility in northern Nevada," Lombardo said, per a transcript of his "State of the State" address.

Why it matters: The faster the U.S. can build manufacturing capacity, the faster EVs will become viable options for consumers, businesses and government buyers.

Details: The new factory would "create more than 3,000 good-paying jobs in Nevada helping America lead in clean energy manufacturing, strengthening our energy security, and ultimately lowering costs for families," Mitch Landrieu, the White House Senior Advisor and Infrastructure Coordinator, said in a statement.

Tesla, in a blog post Tuesday, said it's investing $3.6 billion to add two new factories to its existing Nevada Gigafactory complex outside Reno.

  • One is a plant to build the semi, and the other is a battery cell factory with "capacity to produce enough batteries for 2 million light duty vehicles annually."

Context: Tesla recently started delivering initial units of the Tesla Semi to customers including PepsiCo.

What's next: Tesla is expected to report its fourth-quarter earnings on Wednesday afternoon, potentially providing more details on its plans to produce the Semi in large quantities.

Editor's note: This story has been updated with details throughout.

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