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Tesla Wants To Build A 24-Hour Automotive Battery Plant In Fremont: Report

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Tesla Wants To Build A 24-Hour Automotive Battery Plant In Fremont: Report

Tesla Inc (NASDAQ: TSLA) is commissioning an around-the-clock battery manufacturing facility in Fremont, California, for a project called Roadrunner. 

What Happened

City government documents seen by Reuters indicate Tesla is planning to expand its small scale battery manufacturing capabilities in Fremont. 

The automaker is seeking approval to ramp up its battery manufacturing capacity. Tesla estimates the building of the facility, and the installation of equipment can be undertaken in nearly three months.

Reuters revealed that a total of 470 workers would be assigned to the 24-hours battery operations, out of which 400 would work in shifts so that 100 employees work at manufacturing and production operations at any given time.

Why It Matters

Tesla’s annual shareholder’s meeting, due September 15, will include a “Battery Day.” CEO Elon Musk disclosed that a tour of the cell production system would be given on that day.

According to Reuters, the expansion of the manufacturing facilities might indicate the automaker’s attempt to make its own batteries — the most expensive component in electric vehicles.

Earlier this month, Tesla had entered a three-year deal with Panasonic Corp. (OTC: PCRFY) for battery manufacturing and supply. These batteries would be made in Nevada. 

China’s Contemporary Amperex Technology Co. Ltd also manufactures batteries for Tesla, and its founder Zeng Yuqun expressed willingness to make so-called million-mile batteries for the U.S. automaker.

TSLA Price Action

Tesla shares traded 1.03% lower at $951 in the after-hours session on Wednesday. The shares had closed the regular session 4.09% lower at 960.85.

 

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