By on October 11, 2016

Elon Musk + Tesla Model S Circa 2011

To help make its promise of producing 500,000 vehicles per year a reality, Tesla Motors wants the city of Fremont’s approval to nearly double the size of its assembly plant.

The expansion plan comes as the electric automaker’s CEO promises something unexpected next week.

Tesla hopes to add 11 new buildings totaling 4.5 million square feet to its already existing 5.3 million square foot Fremont facility, CBS reports. Expanding the plant’s footprint would create 3,100 new jobs, the automaker claims, earning it the enthusiastic support of mayor Bill Harris (who has already mapped out where to spend the new tax revenue).

The plant currently employs about 6,200 people.

There’s no timeline attached to the project, but the growth is needed to increase production. Tesla starts production of the lower-priced Model 3 late next year and aims to reach a 500,000 vehicle-per-year target in 2018. Annual production could eventually hit one million vehicles, or so the automaker hopes.

Are those figures feasible with just the Fremont plant? According to the Los Angeles Times, CEO Elon Musk thinks it could be, telling analysts earlier this year, “I think it is actually feasible, maybe not advisable, but feasible to do it with just Fremont and the Gigafactory.”

A plant expansion of that size would carry a steep price tag. Meanwhile, Musk is pouring money into the Gigafactory and existing Freemont plant to get the Model 3 out on time. Until this week, it was assumed Musk would launch another round of fundraising before the end of the year, but the CEO has now kiboshed those plans.

“Would also like to correct expectations that Tesla/SolarCity will need to raise equity or corp (sic) debt in Q4,” Musk tweeted on Sunday. “Won’t be necessary for either.”

How solid is Tesla’s financial ground? We’ll wait until the company releases Q3 figures later this month.

Cash isn’t the only thing Musk is tweeting about. As he’s known to do, Musk took to Twitter to tease an October 17 product unveiling, leaving his fans overjoyed and tingling with feverish anticipation. Meanwhile, his detractors roll their eyes at the hype-generating tactic.

Musk claims the product to be unveiled is “unexpected by most,” but we’ll leave the speculation up to you.

 

 

 

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14 Comments on “Tesla Seeks an Expansion as Musk Cranks Up the Speculation Machine...”


  • avatar
    CoreyDL

    “the electric automaker’s CEO promises something unexpected next week.”

    Boondoggle key chains. I made like infinity of those at Scout Camp.

  • avatar
    Kenmore

    “Musk claims the product to be unveiled is “unexpected by most”

    Not least of all Samsung but they’re ecstatic about dumping their Note 7s at wholesale, even eating the cost of slapping little T***a labels on them.

  • avatar
    SCE to AUX

    “How solid is Tesla’s financial ground? We’ll wait until the company releases Q3 figures later this month.”

    No, we won’t. The response will be either “Tesla deathwatch” or “they’re lying”, which is as sure as the sunrise.

    • 0 avatar
      orenwolf

      Sad but true :/

      Not looking for more capital is a good sign, IMHO. I’m much more interested in the logistics of a plant with that many units. Is that normal in the auto industry?

  • avatar
    5280thinair

    While the expansion plans would be good for Fremont, one does have to question continuing to put all of your production eggs in one basket – especially a basket sitting in one of the most expensive areas of the country and that’s prone to earthquakes to boot. Tesla could presumably cut manufacturing costs by building the cars in a less expensive area.

    • 0 avatar

      Were I a member of the Fremont, California community, and if I studied the earnings reports from Tesla and SolarCity, my concern would be… How in the world will we attract a company to utilize this giant property after Tesla goes bankrupt?

      But I’m not a member of the Fremont community so carry on Tesla. Luck be with ya.

    • 0 avatar
      SCE to AUX

      I think they got a good deal on the old NUMMI plant.

  • avatar
    LS1Fan

    Teslas next big product unveiling will be one of two things;

    SEC and FBI indictments for money laundering.

    OR

    Chapter 11 Reorganization / Chapter 7 liquidation. My advice to the citizens of Frement employed by the House of Musk(by way of their Quarterly Statements) : don’t plan on retiring there.

  • avatar
    redmondjp

    My guess is that he is going to announce that he is selling a majority share in the company to Chinese investors.

    Because that is the only way that he is going to come up with the cash needed to do everything he says he is going to do.

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