Tesla, according to Gov. Brian Sandoval’s recent speech, will also be making the electric motors for its Model 3 at its Gigafactory in Nevada. The governor said on Tuesday night that the electric car maker will invest an extra $350 million to outfit its massive $5 billion factory with production lines to make the gearbox components and electric motors, according to Fortune.
No additional incentive
“Tonight I am pleased to announce that Tesla will expand its investment in Nevada by producing the electric motors and gearboxes for the Model 3 at the Gigafactory,” the governor said.
Sandoval also said that the move will add 550 new jobs. He thanked the EV firm for doubling down on its commitment to the state and noted that company has already offered significant economic growth to Nevada.
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Currently, according to the governor, Tesla has 1,000 people employed in full-time positions and another 2,000 construction employees working onsite. As part of a nearly $1.4 billion tax incentives package assented to by the governor and the state legislature in September 2014, the automaker has agreed to create around 6,500 jobs. But CEO Elon Musk has said that the factory will ultimately employ 10,000 people, notes Fortune.
Tesla Chief Technology Officer JB Straubel was also present during Gov. Sandoval’s speech on Tuesday evening. The expanded production does not include any new incentives or rebates. Tesla’s mass market Model 3 will be produced at the Fremont, Calif. factory.
Tesla aims to control production
Tesla made the news in 2014 when Musk said that Nevada would be the host state for the Gigafactory. If the automaker brings the electric motor production to its Nevada factory, it will allow it to maximize its foothold at its Fremont factory, where every inch of the hefty 5.3 million-square-foot space will be required to hit Tesla’s goal of manufacturing 500,000 cars yearly, says Fortune.
The Nevada factory is located on some 3,200 acres, while the Fremont factory is landlocked without much space to expand. The automaker expects the factory to be the largest building in the world once it is complete. It has more than 10 million square feet of operational space, and its current structure has a footprint of 1.9 million square feet which houses 4.9 million square feet of operational space across many floors. Almost 30% of the massive factory is complete.
On Tuesday, Tesla shares closed down 0.91% at $235.58. Year to date, the stock is up more than 10%, while in the last year, it is up almost 15%. The stock has a 52-week high of $269.34 and a 52-week low of $141.05.