By
Bena Ilyas
April 23rd, 2024
Tesla CEO Elon Musk announced that the company has plans to expand its production in the U.S. Cybertruck and Model Y factories are to be opened there.
Tesla Inc (NASDAQ: TSLA) Co-Founder and CEO Elon Musk went to Twitter to announce that the company is set to open a Tesla Cybertruck gigafactory in the central USA, while Model Y production set for the east coast. It is a bold move to invest billions of money at these uncertain times headed by coronavirus stock panic.
Scouting locations for Cybertruck Gigafactory. Will be central USA.
— Elon Musk (@elonmusk) March 11, 2020
The Cybertruck model was unveiled in Los Angeles at a colorful event in November hosted by Musk himself, whereby, the truck once fully produced and loaded will start at $39,900. The truck is set to compete with the Ford F series and also the Chevrolet Silverado from General motors.
Model Y production for east coast too
— Elon Musk (@elonmusk) March 11, 2020
The Model Y which was unveiled back in March 2019, is an electric compact crossover utility vehicle that production begun in January 2020. The first batch of deliveries on Model Y is set to begin by the first quarter of this year, where Tesla announced it is the second vehicle to be based on the model 3 sedan.
The decision made by Tesla Inc on where to set up the gigafactory was significantly influenced by the state incentives, access to a skilled workforce and also a low cost of logistics. The news was a great plus on the falling Tesla (TSLA) stock, which at the time of writing gave indications of rising above the all-time highs.
The news was welcomed warmly by his twitter followings, however, it is not to be thrown under the table how Elon gives promises which never meets deadlines. Back in 2016, Elon was quoted promising Tesla customers a drive itself across the American roads by the end of the following year, which only came to be preemptive promises.
Effect of the Cybertruck Factory and Model Y on Tesla
Tesla as an electric auto-car maker has been greatly hit by the coronavirus and crude oil turmoil that has dominated the stock market up to now. The company which has its huge production based in mainland China, closed all of its operations to help the local authority control the spread of coronavirus.
As a result, most deliveries were delayed for weeks if not months, resulting in the free fall of the stock. As the coronavirus continues spreading fears in the American territory after the CDC confirmed the 1,000+ cases, it remains a wonder if the promise will be achieved due to the lock-down taking place on the ground.
However, it is a bold move that might be the savior to the company which has been marred by crazy speculation on its stock market.