Just over six months ago, Tesla only had one factory turning out cars. It could soon have as many as five.
A spokesman for the county government would not discuss the agenda for the executive session portion of the weekly meeting, although he said any package of tax breaks and other inducements will need a public hearing before it is approved. Tesla(TSLA) did not respond to questions about negotiations.
But in April, CEO Elon Musk said he expected to announce a new US plant by the end of July, if not sooner. And asked by investors how many assembly plants he expected to be operating within five years, he said „several more than there are today.“
Tesla will need more plants soon. Its main plant in Fremont, California, has reached and even exceeded capacity, with many of the cars being built under a permanent tent-like structure that was added as it sought to increase production of the Model 3, now its best selling car.
But as it begins to ramp up production of the Model Y, as well as the Cybertruck pickup, due to go into production in 2021, it needs more capacity. With Americans shifting away from sedans to buy SUVs, the Model Y will be a key vehicle for Tesla. Musk has said it should become the company’s bestseller, targeting sales that could make it the bestselling SUV of any kind, gas or electric, in the US market.
