Tesla’s Model 3 Parts Will Be Manufactured in the Gigafactory
Tesla has got big aims for the year 2018. The automaker company plans to sell about 500,000 of its Model 3 cars by the year 2018. Some might feel it is a bit too ambitious, but then we are talking about Elon Musk here. Currently, the company has its Model 3 parts being made in its home factory in California. But to have the process running faster, Tesla aims to shift some of its Model 3 parts for manufacturing at the Gigafactory in the state of Nevada. At least, that is what the state governor Brian Sandoval said in his speech yesterday.
Currently, Nevada is in charge of manufacturing lithium-ion batteries for the company. Which is why Sandoval was pretty happy when it tied the deal with Tesla to now manufacture its electric motors and gearbox components.
In a way, the company is doing more than just having its cars made faster. It is, in fact, creating up to 550 new jobs at the factory and helping the state of Nevada by increasing its economic growth. This encouraged Nevada to provide Tesla with more incentives by cutting down property and sales tax and giving job credits.
Tesla already has 1,000 full-time workers at the Gigafactory, with a further 2,000 in charge of the construction site where Tesla will have its Model 3 parts made. About one-third of the site is already constructed. The sooner it gets constructed, the faster the company sells out its cars.
Can Tesla Meet Its Ambitions?
In 2016, Tesla aimed for selling 90,000 of its cars which it narrowly missed by selling 83,992 of its electric vehicles. Even for selling half of these, the company would have to speed up its production process to meet with growing demands.
It may or may not be enough to have some of the manufacturing load transferred to Nevada. It may give the factory in California a great amount of space to freely assemble the cars in time with the load off, but production needs to step up even more than that. Tesla is fighting back by also purchasing an automation company which will help in the car assembly. Musk has his hands full, but with all those rockets on stand-by, one cannot really question his ambitions.
Stay in the loop
GET A DAILY DIGEST OF LATEST TECHNOLOGY NEWS
Straight to your inbox
Subscribe to our newsletter