Tesla (NASDAQ:TSLA) has applied with the Texas Department of Licensing and Regulation to expand its Gigafactory in Texas, as per Austin Business Journal’s report. As part of its expansion plans, the EV giant plans to invest about $776 million in the factory.
Reportedly, the company will increase the size of the factory to 5.6 million square feet and add five new facilities to it. The construction work is expected to be completed by February 2024.
Tesla is currently using the Gigafactory to produce its Model Y vehicles. Going forward, the company plans to use the site to build its humanoid robots, the Tesla Bot, Tesla Semi, and new vehicles built on the Gen 3 vehicle platform, the report stated.
The EV sector has been facing several headwinds, including global supply shortages and lower demand for vehicles in China. Investors eagerly await Tesla’s fourth-quarter earnings, scheduled for January 25, to get some clarity on the company’s plans to tackle these roadblocks.
Upcoming Event
Tesla will hold its 2023 Investor Day on March 1 at the Texas Gigafactory. The company is likely to discuss its long-term expansion plans and provide further information on the Gen 3 platform and capital allocation plans at the event.
Is TSLA a Buy?
Currently, analysts are cautiously optimistic about Tesla stock. This is based on 20 Buy, nine Hold, and two Sell recommendations on the stock. The average TSLA price target of $251.48 implies 111.6% upside potential from the current level.
