Tesla will spend record $ 12 billion on production expansion

Tesla will spend record $ 12 billion on production expansion

October 26, 2020 0 By autotimesnews

The money will be spent in just two years

Recent financial documents released by Tesla show that in 2021 and 2022 the manufacturer will invest a total of $ 12 billion in expanding its production alone, Electrek.co reports. The editor-in-chief of this publication, Frederic Lambert, is a minority shareholder in Tesla and does follow the company’s financial communications.

The money is planned to be spent on the creation of production on three continents. Apparently, this refers to the construction of automobile plants in Texas and the suburbs of Berlin, as well as the construction of the next stages of an already operating plant in Shanghai.

Separately, it is said about the expansion of production of the Model Y crossover, for which the largest queues are now lined up, as well as the creation of production of new batteries of the 4680 type.

Interestingly, the plan also includes significant investments in expanding the production of solar panels, and more specifically in solar shingles, which can be used as roofing of private houses and generate electricity to charge electric vehicles.

Presenting investors the financial results for the third quarter of 2020, the head of the concern Elon Musk said that it will be solar tiles that will become the next dominant Tesla product that will change the market.

The amount of investment can be called one of the largest in the history of the global automotive industry. For example, the Volkswagen group is investing 30 billion in electric vehicles, but this money will be distributed over five years and will go not only to organize production, but also to develop new models. Thus, we can say that Tesla is investing in the future at least as much money as the world’s largest automaker (by the number of cars sold).