Tesla bids for $776 million Texas gigafactory expansion

As Tesla shares continue to fall, falling more than 65 percent over the past year, the company has moved ahead with proposals for new expansions at its Austin, Texas gigafactory that will cost the bulk of $1 billion.

According to reports by Cody Baird in the Austin Business Journal, Tesla filed on Monday and Tuesday to seek approval from the Texas State Department’s Office of Licensing and Regulation to expand its presence in Austin. The $775.5 million improvements to Tesla’s Texas headquarters will include investment in new testing, development, and manufacturing.

Baird talked about expanding the Tesla plant, which is already almost a mile long, with four separate development projects:

Tesla’s proposed additions include a project called “Cell 1,” which is the largest and most expensive of the four and will be housed in a 693,093-square-foot facility at a cost of $368 million. There’s also the “Drive Unit”, a 423,032-square-foot space worth $85 million; “Cathode”, an area of ​​321,186 square feet and a cost of 260 million dollars; and finally, the Cellular Testing Lab, which is relatively small at 2,560 square feet and cost $3.7 million.

Tesla’s filing comes on the heels of a historically difficult year for the company’s market share and share price, each of which has plummeted in line with the many fortunes of other tech companies. This decline continued until 2023 amid rising federal interest rates and a generally recessive financial market.

The automaker’s descent is, of course, exacerbated by a rise in competing electric vehicle offerings from major automakers, as well as COVID-19 crackdowns and manufacturing issues that have halted production at Tesla’s overseas facilities in China. Combine that with Musk’s recent acquisition of Twitter and diving head first into the day-to-day operations of Twitter, and you have a recipe for an economic downturn, with Musk becoming the first person on record to lose $200 billion, a reward he earned just before the end of 2022, according to Brian. Chappatts from Bloomberg.

Based on filings this week, Tesla is not letting its recent troubles get in the way of plans to scale and continue to lead the electric vehicle market in research and development. Whether the application will be approved is still unknown. In October, a Musk-linked limited liability corporation made headlines after it applied for a state permit to discharge treated wastewater into the Colorado River on land it had acquired near Bastrop, Texas.

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