Tesla Inc.
TSLA 3.44%
is considering more than $775 million in expansions at its electric-vehicle plant near Austin, Texas, an indication the auto maker is maintaining production growth ambitions in the face of Wall Street concerns over demand for its cars.
Work on the new infrastructure could start as early as this month, according to regulatory filings in Texas. The registration documents filed this week with the Texas Department of Licensing and Regulation cover facilities to make and test batteries and other aspects of making its vehicles.
Tesla produces the Model Y crossover vehicle in Texas and has said it plans to begin building its pickup truck, known as the Cybertruck, at the plant this year. It currently has capacity to make more than 250,000 vehicles a year at the facility, the company has said.
Tesla didn’t immediately respond to a request for comment on the new construction projects.
Chief Executive
Elon Musk
last year said the company might open 10 to 12 new factories to increase production to meet its goal of selling 20 million vehicles by the end of the decade. The company is close to picking a location for a new factory, Mr. Musk said last month, without providing detail.
“We are applying capital at pretty close to the fastest rate we can spend capital and not be wasteful,” he said.
Tesla last week reported vehicle deliveries for 2022 that fell short of Wall Street forecasts. Those estimates had already come down after the car maker signaled in October it would ship fewer vehicles than it had originally targeted. Those numbers, coupled with incentives Tesla offered in the U.S. to get buyers to take delivery of vehicles before year-end, have spurred investor concerns that demand for its vehicles may be softening.
Tesla’s stock just closed out the worst year in its history, slumping 65%, amid demand concerns, worries by some investors that Mr. Musk’s takeover of Twitter Inc. in October was distracting the billionaire from running the car company and other factors.
Tesla is also facing more competition in the electric-vehicle market as more traditional car companies enter the space.
Despite the challenges, including temporary production disruptions at its China factory due to Covid-19 outbreaks, Tesla increased vehicle deliveries last year by 40% from the year prior, handing over around 1.31 million vehicles. The company is expected to post record annual profit when it announces fourth-quarter results later this month.
Write to Meghan Bobrowsky at [email protected]
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Appeared in the January 11, 2023, print edition as ‘Tesla Considers Texas Factory Expansion.’
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