Big Trucks, Big Factories, Big Tesla

Big Trucks, Big Factories, Big Tesla

More than $3.6 billion will be spent by Tesla to add two additional buildings to its Nevada Gigafactory complex, one of which will be used to mass produce its long-delayed Semi electric truck and the other to create its new 4680 battery cell. To power 2 million light-duty vehicles annually, the cell plant would be able to make enough batteries, including those using the 4680-type cell. In order for Tesla to meet its 2030 goals of halving battery costs and triple battery production, the 4680 is crucial.

The facilities, which will add to the electric car manufacturer's complex east of Reno, where it operates a battery joint venture with Japan's Panasonic Corp. and manufactures vehicle parts and power backup systems, will collectively employ roughly 3,000 people. At the moment, the EV manufacturer builds the battery packs using Panasonic-supplied cells. At its factories in California and Texas, the EV company struggled to get production up of the 4680. One theory is that the company has had difficulty scaling up production to the point where the significant cost savings begin because the dry-coating technology used to make the larger cells in these batteries is novel and unproven.

This is all pointing to Tesla becoming more committed to the long-awaited mass production of the Semi,  which was anticipated to start in 2019. PepsiCo received the first Tesla Semi delivery in December, and orders from UPS and Walmart have also been received. With a maximum range of 500 miles (800 kilometers) cross weight of 81,000 pounds (37 tonnes), including the trailer and cargo, the Semi might be eligible for the $40,000 in tax credits provided by the Inflation Reduction Act.

Tesla Results Approaching

Tesla's fourth-quarter and full-year 2022 earnings is due, and with it, predictions for the electric vehicle manufacturer's revenue for the quarter to touch $24.03 billion and adjusted earnings per share to land at $1.13, per data from Yahoo Finance. If Tesla achieves that revenue projection, it will set a new high for the business but also represent the slowest rate of growth since the middle of 2020. As per normal, Tesla will release its financial results on Wednesday (tonight) following market close.

Expect to soon see more Tesla Semis on the road.

Tesla reduced the cost of its long-range Model Y crossover (20% to $52,990) and Model 3 sedan (14% to $53,990) for American customers earlier this month. The vehicles are eligible for the $7,500 federal tax credit provided by the August-enacted Inflation Reduction Act (IRA) due to their new, lower base prices. According to the IRA, the threshold is $55,000 for electric sedans and $80,000 for SUVs, pickup trucks, and vans. Model S and Model X costs from Tesla were also reduced, although they are still too expensive to be eligible for the EV tax credit.

Price cuts

The company has reduced the price of its automobiles or provided credits at least four times in the most recent few months. Tesla reduced the pricing of the Model 3 and Model Y in China by up to 9% in October, then by a further roughly 14% earlier this month. Additionally, the business began December with a $3,750 discount for Model Y and 3s in the US and Canada before raising it to $7,500 later in the month.

The price reductions, which investors believed indicated a decline in demand for the famous EVs, have not been well received by the market. However, it appears that the price reductions actually increased demand for cars. Investors will be trying to determine whether Tesla's margins have been too adversely impacted by the price reductions. Although it may be too soon to know the answers, Tesla will probably offer some suggestions.

New factories

On Tuesday, Tesla revealed plans to invest an additional $3.6 billion into its Nevada gigafactory, adding two new facilities for the production of Tesla Semis and battery cells. The manufacturer may go into more detail about these plans, including the anticipated start date for the construction of the facilities. Analysts are interested in learning about other new gigafactories because the automaker has stated a multi-year strategy to increase production by 50%. According to rumors, Tesla is considering building a $10 billion gigafactory in Mexico, and the corporation is also close to agreeing to build plants in Indonesia.

Cybertruck update

Although Musk claimed in July that the business was on pace to introduce the truck by the middle of this year, Tesla's Cybertruck has also had numerous delays. We anticipate more timing adjustments as well as the addition of additional features. Musk claimed the Cybertruck will be "waterproof enough to temporarily double as a boat" in September.