Biden Touts Elon Musk's Promise to Spend $3.6 Billion on New US Manufacturing Project

Elon Musk and Tesla are expanding manufacturing to reach its production goal.

Elon Musk and Tesla have set a goal to produce 20 million electric vehicles by 2030.

The Austin, Texas-based EV manufacturer has some work to do to reach that goal as it produced a record 1.37 million EVs in 2022.

Tesla's  (TSLA) - Get Free Report Austin and Fremont, Calif., assembly plants currently have the combined production capacity of 900,000. The company's Shanghai manufacturing plant has a 750,000 vehicle production capacity, while its German factory has a 250,000 vehicle capacity.

Musk in January 2022 said during Tesla's 2021 fourth-quarter earnings call that 2022 was the year the company would look at possible locations for a new factory and possibly reveal its decision by year-end. Then in August 2022, Musk said that he hoped to formally announce a location of the company's new gigafactory later in 2023.

More Tesla Semi Manufacturing Coming

The company has decided to build a $3.6 billion battery and Tesla Semi truck manufacturing plant in Northern Nevada, the Las Vegas Review-Journal said the White House confirmed on Jan. 24.

The EV maker already operates a gigafactory in Storey County, Nev., where it manufacturers lithium-ion batteries and other EV components. The new factory will add production capacity for Tesla Semi vehicles, which PepsiCo. has purchased for its delivery fleet.

The Biden administration, which has emphasized infrastructure investment in its first two years in office, called the proposed development a success in an American "manufacturing boom" under President Biden, the Review-Journal said.

As part of its infrastructure initiative, the Biden administration last fall funded two grants for battery materials processing and manufacturing in Nevada