Tesla CEO Elon Musk met Jason Stein again on the Daily Drive Automotive News podcast. Musk said that in four years, Tesla may start building a third factory in the United States.
Daily Drive is a daily podcast that provides updates during the coronavirus outbreak. Automotive News Publisher Jason Stein speaks with industry experts, insiders and Automotive News reporters about how the coronavirus outbreak is impacting and reshaping the automotive industry.
Speaking on a podcast on Monday, Musk came up with the idea of a third Tesla factory in the U.S. The company's factory in Fremont, California is currently responsible for all Tesla production in its home country, as well as nearly worldwide, except Model 3 for China. Giga Shanghai is producing Model 3 and will soon be producing Model Y for the Chinese market. Giga Berlin will produce Model Y, and Model 3 for Europe. Also in July 2020, Tesla signed a contract to build a factory in Austin, Texas. Giga Texas should ease tensions at the Fremont plant.
However, the U.S. is a huge market and Tesla's popularity is growing at an astonishing rate. Therefore, after a while, there will be a need to build more factories.
“At some point, there’ll be a third Gigafactory, probably.“
On the podcast, Musk said that a third factory in the U.S. is likely to appear in the Northeastern corridor of the country. Some of the biggest cities in the U.S. are in the Northeastern belt. This list includes the metropolises of New York, Washington, D.C., Boston, and Philadelphia.
"I'd imagine, you know, closer up North, Northeast, most likely."
According to preliminary estimates, the need for one more factory will arise in the next 4 years.
“This is literally a spur of the moment rough guess, probably we’d start construction in four years-ish,” Musk said. “That’s just like my sort of stream-of-consciousness guess.”
Building out additional factories would no doubt further improve upon Tesla’s logistics timeline. Customers all over the country will have more efficient delivery times.Follow @EvaFoxU