Tesla to Invest a Whopping $6 Billion in Factory Expansion within 2 Years!
Financial analysts are expecting Tesla to spend an upwards of $6 billion on equipment and factories in the next two years as it strives to increase its production, as well as create new vehicles.
The aforementioned data was released by the company during a regulatory filing this previous Friday.
2.5 Billion on Capital Investments
That being said, the electric vehicle company is also planning to splash just under $2.5 billion on capital investments this year.
Additionally, the company is expected to make respective investments of $2.5 billion and $3 billion in subsequent years. Apart from this, Tesla is further planning to build a Chinese based factory, which will go by the name Gigafactory 3.
With this factory, the company aims to produce about 3000 Model 3 sedans per week in a bid to increase production.
That being said, the filing by the company warned against the time frame that it had set on producing the aforementioned targets, citing that they were highly susceptible to a number of uncertainties such as the pace of bringing the factory online, the supply chain constraints, as well the regulatory film.
Nevertheless, Gigafactory 1 that is located in Clark Nevada, is where the company focuses on making the Model 3 drivetrain parts, as well as it batteries.
On the other hand, the Gigafactory 2 is the primary plant for its solar power and is located in New York, Buffalo.
Taking Model 3 Manufacturing Internationally
Indeed, Tesla has plans to further their manufacturing of the Model 3 to Shanghai in order to minimize the tariffs impact as a result of the China-US trade war. That being said, Tesla experienced a flat trade on its shares in the morning after such news.
However, the filing also shows that the Model 3’s production targets are under investigation by the Justice Department as well as the SEC. In fact, the company has been blowing through large sums of cash as it struggles to improve its products and the deliveries of the midsized Model 3 Sedan.
That being said, Tesla has confidently said that it has big plans for the coming years.
Only last year did Tesla introduce to the market the electric semi-truck, but has not released any info regarding new products, as well as how the company will ensure the production of its new car is reproduced.
Developing a Sports Car
That being said, the company has been planning on developing a car that is a crossover between sport and traditional Tesla design which will be known as the Model Y.
Additionally, there will be a second generation of the Tesla Roadster with Musk explained will be much faster as compared to other cars on the road.
Moreover, the company is striving to venture into solar system business in the rooftop sector. That being said, the pickup truck that Tesla has created has an aura of looking like something straight out of a sci-fi movie.
Indeed, the electric vehicle car company has shown snaps of the car and what it would look like during an event held by the company last November.
Additionally, Musk has now released more details regarding the vehicle in an interview with Recode’s Kara Swisher. Musk informed Miss Swisher during the interview that the truck would be similar to a futuristic Blade Runner pickup truck.
Indeed, Swisher comments on the interview with Musk, stating that his personality was that of excitement about the new launch.
When asked whether the vehicle would sit favorably with consumers, Musk commented by saying that he’s not sure whether or not a people would buy the pickup truck. Additionally, he states that the pickup truck is an idea that the company has been wanting to do for quite a long time.
Nevertheless, if the vehicle only finds favor with a pocket-sized number of consumers, Tesla admits that he will have to design a future truck with greater convenience.
Confident of the New Releases
Musk also addressed the four-seater sports car, the Roadster, and confidently stated that the car would be the fastest car on the roads when judged from every dimension.
He says that it’s important that electric sports cars be faster than gasoline-powered cars. Indeed, such a setup will help address the halo effect that is normally seen with gasoline sports car.
That being said, he believes that the electric car today is at its finest architecture.
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