Tesla’s next Gigafactory could be built in Canada, if CEO Elon Musk’s new lobbying efforts and hints are correct.
At Friday’s annual shareholder meeting in Austin, Musk said the company is considering all of North America for potential new plants and asked onlookers where it should build the next giant factory for the automaker.
“We’re looking at locations, but we’re considering some locations in North America more broadly, so also in Canada and Mexico, and also in the US,” he said. A number of onlookers also called Canada when he asked.
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Tesla CEO Elon Musk, seen above with his mother Maye at the 2022 Met Gala, recently teased Canada as a potential location for one of its new Gigafactories
“We’re looking at locations, but we’re considering some options for locations wider in North America, including Canada and Mexico, and also in the US,” Musk said. Pictured: Tesla cars are parked on a lot at the Tesla factory in Fremont, California on April 20, 2022
“I’m half Canadian, so maybe I should,” Musk joked to the crowd.
Another clue recently emerged. Electric Autonomy Canada reports Tesla updated its lobby register in July 2022 with a new target:
Work with government and its agencies to identify opportunities for industrial and/or advanced manufacturing facilities that enable reform with a view to increasing Ontario’s competitiveness and its ability to attract capital investment by setting approval deadlines that are competitive with high-growth manufacturing sites in North America, while also working with the government to identify or align incentive programs that could further enhance Ontario’s attractiveness for industrial and/or advanced manufacturing investment.”
That sounds like a company that could lay the groundwork for something new. Electrek reported in November that Tesla was in talks with the Quebec government to make a billion-dollar investment in a battery manufacturing facility in the province.
Telsa ultimately plans to build 10 to 12 gigafactories eventually. Each would have an average output of about 1.5 to 2 million units. Damien Boozer and Paul Jacob Working on the Tesla Model 3 General Assembly at Tesla’s Fremont, California Plant
However, Musk has said Tesla needs to do a lot to ramp up production at its existing plants in Berlin and Austin.
‘There are many problems. None of the problems are so difficult individually. But there are about 10,000 of them. The production speed is comparable to how quickly you can solve the 10,000 problems – essentially. And we solve them quickly, but there is a lot of work to be done,” explained the mogul.
The world’s richest man has said his factories are losing “billions of dollars” to smooth chain chaos and battery shortages.
“This factory is losing an insane amount of money right now,” he explained to members of a Tesla owners club in Austin’s Silicon Valley in June. “We should use a lot more cars from this factory instead of a very small number of cars.”
“Both factories in Berlin and Austin are huge money kilns at the moment. Okay? It’s really like a giant roaring sound, that’s the sound of money on fire,” he said.
Musk said Tesla’s Texas plant is producing a “small” number of cars because of challenges in boosting production of its new “4680” batteries and because tools to make its conventional 2170 batteries “are stuck in the port of China.”
“This will all sort itself out very quickly, but it takes a lot of attention. It will take more effort to get this plant into high-line production than it took to build it in the first place,” he said.
Telsa ultimately plans to build 10 to 12 gigafactories eventually. Each would have an average output of about 1.5 to 2 million units.
The company’s goal is to sell 20 million cars per year by 2030.
WHAT IS TESLA’S ‘GIGAFACTORY’?
Tesla’s newest Gigafactory in the United States is located in Austin, Texas, near the Colorado River.
The factory’s name comes from ‘giga’, a unit of measurement that represents billions.
One gigawatt hour is the equivalent of generating one billion watts for one hour — one million times that of one kilowatt hour.
Spanning 2,500 acres with over 10 million square feet of factory floor, the facility will be a production center for Model Y and the future home of Cybertruck.
That is the equivalent of total world production in 2014.
New York City uses about 52 gigawatt hours of energy per year.
Tesla also has extremely large factories in Nevada, New York, Berlin and Shanghai.