Tesla owner Elon Musk recently hinted about considering Asia as the next venue for his next gigfactory. Tesla is already looking to set up a second gigafactory in the US and is being wooed by all the states. Its gigafactory in Berlin is still under construction and Tesla intends to build 500,000 vehicles a year at this new facility once it becomes operational.
Elon Musk was replying to a question on Twitter. A person asked if Tesla will “expand Tesla mega factories in Asia outside China?” Musk responded with “Yeah” before adding that “first we need to finish Giga Berlin and a second US Giga to serve eastern half of North America.”
Third gigafactory in Asia?
This is the first time that Musk has indicated any plans for expanding manufacturing in Asia. It already has a gigafactory operating out of Shanghai.
Musk did not indicate where the factory will be located, though he hinted it would be outside China. People are speculating that the gigafactory in Asia will be most probably located in the auto hub countries of Japan or Korea. Another point in their favor is that in both the countries electric vehicles are very popular and have a burgeoning market.
India too can be a viable option as the government is actively looking to phase out petrol and diesel engine vehicles by the next decade.
Elon Musk has been rumored traveling around the world to scout for new spots for gigafactories. He recently went to the United Kingdom and there was excitement about factory scouting.
Even in the United States, Elon Musk is seen visiting states and talking to officials and looking at facilities, but he has not yet zeroed in on a site. The company has filed an application with an Austin-area school district in Travis County seeking a tax abatement, leading many to guess that he may probably locate the factory in Texas.
Musk is looking for as site to manufacture his Cybertruck, which was unveiled recently and Model Y crossover.
Amidst the coronavirus-forced shutdown of Tesla’s factory in Fremont, California, Musk insisted that the factory be allowed to operate after observing all the health and hygiene norms. The county was reluctant to accede to his demands, but he threatened to relocate the factory and was allowed to resume production and plans to expand capacity once the pandemic is over. Tesla is also looking to grow capacity at Giga Shanghai and its original Gigafactory 1 in Nevada.
During an analysts call, Musk had elaborated on the company’s plans to introduce terafactories, about 30 times the size of Tesla's gigafactory in Nevada. Here, the auto company plans to manufacture batteries using processes that are fast, automated and less labor-intensive.
"We’ve got to really make sure we get a very steep ramp in battery."