Tesla has stopped Megapack production at Giga Nevada, but this is just the beginning for Tesla’s most underrated facility.
Tesla Giga Nevada has never been the most well-known or talked about gigafactory in the Tesla fleet, despite its incredible contributions to Tesla’s Energy division and, more recently, to the production of the Tesla Semi. Now, the Nevada plant is being dramatically shaken up, potentially for the better, as it will no longer be producing the Megapack.
The announcement of the final Megapack leaving Giga Nevada was posted to Linkedin by a Tesla production technician and was subsequently published on Twitter by Sawyer Merrit. The post is far from lengthy and only shows a single picture of the final Megapack leaving the facility.
NEWS: @Tesla has built its last Megapack at Giga Nevada. Production has now fully moved to their Lathrop, California Megafactory where they make the next-gen Megapack XL, which are much more profitable.
Source: https://t.co/kOE7oIqV5o pic.twitter.com/VLTuoWWZI5
— Sawyer Merritt (@SawyerMerritt) May 2, 2023
In terms of Megapack production, at least for now, this halt at Giga Nevada will shift all focus to Tesla’s new facility in Lathrop, California, which is quickly becoming one of Tesla’s fastest-growing production locations in the United States. Meanwhile, Tesla is already working to establish its second Megapack production facility based in Shanghai, China.
While the end of production is typically not something to celebrate, this could be the start of something fantastic for Giga Nevada. By freeing up staff and production space, the Nevada-based facility can focus on its two primary goals listed on the Tesla website, achieving 100GWh of 4680 battery cell production and kicking Semi production into high gear.
Tesla has not updated its website to reflect the change in Megapack production, but it does highlight a few other key areas where the facility could now focus its freed-up energy. “Located less than an hour from Lake Tahoe, Gigafactory Nevada is one of the world’s highest volume plants for electric motors, energy storage products, vehicle powertrains, and batteries—producing billions of cells per year. Now, we’re continuing to grow Gigafactory Nevada with two new facilities: a 100 GWh 4680 cell factory and our first high-volume Semi factory.”
Tesla’s need for battery cells, notably those from Giga Nevada, cannot be understated. Top-selling products, including the Model 3 and Model Y, are still growing in popularity quarter over quarter, and battery cell production is the primary limit on how many vehicles the automaker can produce. Moreover, the Tesla Semi is poised to enter mass production in the near future alongside the highly anticipated Cybertruck, both of which will be incredible battery-cell-hungry vehicles.
As for Tesla’s Energy division more broadly, CEO Elon Musk has maintained his belief that the segment will eventually outpace its vehicle offerings in terms of revenue, and by moving to more dedicated production locations – Shanghai and Lathrop – the business unit is well on its way towards achieving that goal.
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