Tesla is kicking into high gear again after massively cutting the prices of its EVs, Elon Musk just announced Tesla’s biggest investment yet, completely shocking the industry but what exactly is Musk investing in? has been and how it will affect the price and performance.
Elon Musk with its ultra modern cars, impressive software and charismatic CEO in which the secretive Project Musk is investing its money and trust. In 2013 it rapidly blew up the number of companies now competing for Gigafactory status.
Described by Elon Musk as a company that builds machines in an effort to compete with the EV giant. From batteries to solar panels and of course electric vehicles. It’s like a one-size-fits-all factor three. It’s quite a futuristic concept wouldn’t you agree that these Gigafactories are essential to Tesla’s growth and success.
For example for Tesla to produce 500 000 EVs every year they would need almost all lithium-ion batteries currently available in the market and this would be impossible to achieve as other companies are fighting for those batteries, but that alone The Gigafactory can source raw materials for batteries with Tesla and reduce the production cost of battery packs by up to 30 percent.
If one Gigafactory can do so much imagine if Tesla had five Gigafactories then you can see why Musk is focused on opening more Gigafactories for Tesla. Now the EV maker has three Gigafactories with the largest factory located in Nevada, known as Gigafactory 1 or Giga Nevada. It sits on a massive 5.4 million square feet.
Easily making it one of the tallest buildings in the world, not only in terms of height but also in the space it occupies, it could easily fit up to 77 football fields and still have a little space left over, it How impressive. That’s it. But Tesla still has plans to expand the factory to begin deliveries of the Tesla Semi to the company’s initial customer.
The new investment we are about to reveal can be considered as fulfilling that promise of Elon Musk. Tesla announced that it would invest $3.6 billion in Nevada to set up phase two of the Giga Nevada expansion. While discussing the latest additions to the already impressive facility, Elon Musk explained that the factory will house a massive 4680 battery plant.
Now Giga Nevada already produces batteries but it’s a very small part of what it does and part of that billion dollar investment will go to existing expansion.
Battery plan and scaling up its production to 100 gigawatt hours of batteries for Tesla’s vehicles. This much battery is enough to power 2 million EVs. Can you imagine Musk hoping the factory will achieve 500 gigawatt hours? And if we do the math, that means a single factory will produce enough batteries for an insane number of EVs, over 8 million.
The company is already breaking records with its battery facility in Fremont California as it prepares to ramp up its battery production and recently celebrated the facility producing 868 000 battery cells in seven days 1 000 1 000 That’s enough battery to power more than 1,000 Model Y vehicles and it also shows that Tesla is slowly overcoming the issues that come with mass-producing the 4680 battery.
It would be incredible if Tesla could pull it off and build something big in Giga Nevada. Even Musk has acknowledged that this will be a game changer for the company, so what else is Tesla planning to do at Giga Nevada? , The investment will also expand the production of Tesla Semi. With over 2,000 orders from other companies, there are more EVs waiting to be completed and till they kick Semi’s production into high gear.
Till then customers will have to wait a long time to collect their orders. But there is another good news. Two new mega facilities mean more job opportunities for you as Tesla hires 3,000 new employees to help with production upon completion of the facilities. Hiring is being planned, but Tesla did not say how many or when the new facilities are expected to be built.
Production of the new battery cells in semi truck boxes but it’s possible the company will give us the ground on the new plans later this year. Tesla may have spent a lot of money on Giga Nevada this year, but they have every reason to ramp up their output and celebrate. Apart from being two steps ahead of the competition, the new investment also gives them a big advantage. Do you remember when President Biden promised more incentives to help turn green energy around for good.
One of those incentives created by the Biden administration was the Inflation in the US Reduction Act, which seeks to encourage the production of certain green energy components in the US, such as solar wind and other sustainable things, which, you guessed it, will help EVs companies. will cost About $35 per kWh like Tesla. hours produced. Dollar credit is given and Tesla was going to give its credit to Elon Musk when asked about the price.
That was to say that in the long run we expect the value of these credits to be very significant, you can do the math if we can get anywhere near 1000 gigawatt hours of production or a few hundred gigawatt hours. This is very important so let’s do the math if Tesla produced 60 kilowatt hours of batteries for its vehicles that means its credit would be worth $2.1 billion as Tesla aims to produce 1.8 million to 2.
Million vehicles this year. It’s very likely that EV makers could make billions of dollars a year just from the credits and assuming Tesla succeeds in producing 500 gigawatt hours of batteries, like Elon Musk said they could then 17.5 billion dollars, that would be a staggering year. Can you imagine that $35 a year just from government credits adds up really fast.
To make it even more interesting, the Biden administration has decided to expand its definition of SUV to include more electric vehicles from Tesla General Motors and Ford. The 7 500 tax credit under the previous act did not qualify the Tesla Model Y as an SUV and Muscat had already spoken out about how discriminatory the law was.
This is the first time in years that some Teslas will qualify for the tax credit which will be a huge benefit for the company and for you as a consumer, remember when Tesla cut Model Y prices in January, because The tax credit EV makers have increased has reduced the prices of their vehicles by two per cent as they will still be eligible for the tax act even at higher prices.
If you want to buy a 2023 Model Y Long Range, you’ll now have to shell out a little over fifty-five thousand dollars, which is two thousand more than it cost at the beginning of the year. Does this mean Biden and Musk are friends again? We can’t be sure but looks like they both are all set to work with each other once again.
The two didn’t have the best of relations to say the least, with Joe Biden ignoring Tesla and Elon Musk’s role in the EV industry and Elon Musk reminding the president about some of his key policies. When he called President Biden a fake puppet or Sleepy Joe, most people found it funny, although President Biden and his followers were not too happy about it, but after a series of back-and-forths between the two Elon Musk and President Biden decided to work together.
While Musk did not meet with the president himself, he did meet with two senior members of the Biden cabinet earlier this year to see how they could advance electric vehicle production, where they discussed the development of vehicles in the US. Did. discussed. Watch President Joe Biden and Elon Musk shake hands and talk in public Don’t get your hopes up too high.