For months, there’s been a good bit of speculation on where Tesla would choose to build their newest Gigafactory production plant. While many believed Texas would be the new spot, Tesla remained relatively dismissive of these rumors. However, their recent announcement shows that these rumors seem to have been correct after all.
On Wednesday, the company officially announced that their newest factory would indeed be built in Texas and will be the largest one yet. The nearly 2,000-acre “GigaTexas” plant will be at a site near Austin, placing it 15 minutes from its downtown. CEO Elon Musk described the location as an “ecological paradise”, with “birds in the trees, butterflies, fish in the stream.” The new plant will join Tesla’s other plants in Fremont, California and Shanghai, along with the currently under-construction Berlin plant which is expected to open next year.
The new factory will be the first to produce the highly anticipated all-electric Cybertruck pickup, along with the company’s Semi Truck model. Both are set to debut in 2021. In the future, the factory will also produce Model 3s and Model Ys for the eastern U.S. As for long-term production goals, Musk simply stated the factory will produce “a lot” of vehicles.
The new announcement comes as Tesla reported yet another strong quarterly performance, despite the COVID-19 pandemic. Compared to its contemporaries, Tesla only saw a very minor drop in total sales and deliveries, which has fueled a recent surge in its stocks. Now, the company is valued at $300 billion. Not only is it one of the 25 most valuable companies in the world, but it is also the most valuable automaker. The company is worth more than Volkswagen and Toyota combined, and eight times as much as General Motors. Still, it remains to be seen if Tesla will live up to the new hype surrounding them, especially in terms of production.