Tesla Stops California Plant to Retool for Model X
After a long delay, Tesla is finally making headway on production of the Model X SUV. Tesla halted operations at its assembly plant in Fremont, Calif. in order to prepare for its newest offering. A whopping $100 million will go directly toward adding 25 robots and modifying the assembly lines in the factory. The closure will last two weeks, and Tesla hopes this move will help increase vehicle production in the long term. Tesla spokesman Simon Sproule, speaking with Bloomberg News, said that the move represents the biggest investment in the plant since operations began. The Model X will be produced alongside the Model S, expanding the production capacity enormously. Along with this announcement, Tesla is getting the ball rolling on construction of a battery Gigafactory. Tesla is looking into areas in California, Arizona, Nevada, New Mexico, and Texas for the $5 billion plant. This large-scale battery factory is expected to help Tesla achieve economies of scale and reduce costs by more than 30 percent per kWh for future batteries. Also evidence of its commitment to reducing the cost of electric driving, a new $30,000 smaller Tesla sedan is making its way to the market in the coming years. We'll have to wait to hear more about this future offering. Source: Bloomberg
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