Tesla files for $776 million expansion of Texas gigafactory – One America News Network

(Reuters) -Tesla has applied to expand its gigafactory in Texas with an investment totaling $775.7 million, government filings showed, marking one of its largest expansion drives since setting up the $5.5 billion gigafactory in Germany last year.

It plans to add five new facilities at its Austin site, including a cell test lab and a unit named “Cathode”, according to the company’s filings on the Texas state department of licensing’s website on Monday and Tuesday.

Tesla did not immediately respond to a Reuters request for comment.

The Austin expansion comes days after Reuters reported that Tesla promoted its China chief Tom Zhu to take direct oversight of the carmaker’s U.S. assembly plants as well as sales operations in North America and Europe.

The world’s most valuable automaker has been facing COVID-driven production and logistics snags at its key Shanghai hub, coupled with growing demand concerns.

Tesla’s fourth-quarter deliveries fell short of market estimates. The company is also running a reduced production schedule at its Shanghai plant through January, extending the reduced output it began in December, Reuters has reported.

The company is expected to host its investor day on March 1 at the Austin facility and will likely disclose plans for expansion and capital allocation.

Tesla also has a gigafactory in Nevada, and a production facility in Fremont, California.

Local newspaper Reforma reported in December that Tesla could announce the construction of a gigafactory in the northern Mexican state of Nuevo Leon soon, with an initial investment of between $800 million and $1 billion.

(Reporting by Yuvraj Malik in Bengaluru; Editing by Devika Syamnath)