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The Markets
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Manufacturing & engineering

Tesla plans to spend $776M to expand Texas gigafactory

Tesla Inc (NASDAQ:TSLA) intends to spend $775.7 million to expand its gigafactory in Austin, Texas, according to new documents filed with the Texas Department of Licensing and Regulation this week.

Per the filings, the company plans to add five new facilities to the site bringing its total footprint to 5.6 million square feet.

Construction could begin as early as later this month and be completed by February 2024.

READ: Cost of EV charging skyrocketing alongside demand

Forex.com market analyst Joshua Warner noted that this move looked to be the company’s next big expansion after launching new factories in Germany and the US last year, and comes amid reports Tesla has promoted its boss in China Tom Zhu to take control over its global manufacturing and sales operations.

“Tesla has already said it planned to spend $1 billion on the facility but it is not clear whether this latest commitment is included in that sum or in addition,” he said.

“Notably, Tesla releases results later this month and it has an investor day pencilled in at the start of March, where investors are likely to hear more on its plans.”

Shares of the EV-maker rose on the news, up 2.4% at US$121.75 in pre-market trading on Wednesday.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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