Tesla Stock (NASDAQ:TSLA)
Tesla stock surged as it announced that it intends to invest $3.6 billion to expand its manufacturing capabilities in Nevada. Tesla (NASDAQ:TSLA) plans to produce high volumes of semi-trucks and sufficient cell batteries yearly for 2 million light-duty vehicles in Nevada.
The project would increase the size of an existing Gigafactory that produces batteries for electric cars and will add 5.4 million square feet to the facility. It will bring Tesla one step closer to reaching its goal of manufacturing 50,000 Tesla Semi trucks in North America by the year 2024.
Tesla has stated that it has invested $6.2 billion in Nevada since 2014. The expansion will add 3,000 new jobs and two new factories to its site in the U.S., creating the “first high-volume Semi factory.” Tesla has also referred to this expansion as the “first high-volume Semi factory.”
The initial rumor of Tesla’s enormous expansion surfaced earlier this week, and it is still unknown whether or not the state would grant tax rebates or any other kind of incentives.
The carmaker has issued production projections for 2023 of about 1.8 million cars, which has been a major factor in the recent rally. These high Q4 results helped the manufacturer surpass EPS expectations for the quarter.
Production for the year increased by 47% year over year. Still, the margin record fell short of what analysts had anticipated as a consensus. Looking into the future, we anticipate that the profits connected to hardware will be joined by an acceleration of the earnings linked to the software.
Following quarterly data publication, Tesla stock surged around 10% in intraday trade on Thursday.
Featured Image: Pixabay @ Blomst