Tesla Building New $3.5 Billion Nevada Factory For Semi Production

Electric Vehicles / 2 Comments

Nevada Governor Joe Lombardo confirmed the news in his State of the State address.

Tesla is planning a $3.5 billion manufacturing project in Northern Nevada that could result in a new factory or a major expansion of the existing facility tasked with building the Semi. Nevada Governor Joe Lombardo already announced the news in his first State of the State speech.

"I am looking forward to joining Elon Musk and the team at Tesla tomorrow when they unveil plans to build a brand new $3.5 billion-dollar advanced manufacturing facility in Northern Nevada for the company's all-electric semi-trucks," Lombardo said.

A White House spokesperson also confirmed this and Tesla is expected to do the same shortly. "This announcement is the latest in more than $300 billion in private sector investment in clean energy and semiconductor manufacturing announced since the President took office," said Mitch Landrieu, President Biden's Infrastructure Coordinator.


"It will 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." Assuming everything goes to plan, the new facility is expected to produce 3,000 new jobs in the Silver State. Tesla has long had a presence in Nevada.

That Gigafactory has been producing batteries, electric motors for the Model 3, and, on a smaller scale, the Semi. The first examples only very recently rolled off the assembly line. But volume production is another matter and Tesla seems to have concluded that additional space is necessary.

However, we cannot confirm at this time whether Tesla's investment involves an entirely new and separate facility or a major expansion of the existing one. We will update this space once more details are available.


Last summer, this existing facility required state approval to change classifications that will allow it to increase the amount of emissions it releases annually. That does not mean Tesla can follow less strict standards, however. It just wants to produce more emissions because the factory is being expanded.

Selecting Nevada as either the site of a new Gigafactory or a large physical expansion of the current one will allow Tesla to benefit from numerous tax incentives, such as tax credits for vehicles and qualification for consumer tax credits from the Inflation Reduction Act. Funds from the huge infrastructure law that President Biden signed last November will be going to Tesla's suppliers for this project.

More details coming soon.


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