Tesla is reportedly in talks with Nashville officials to open a gigafactory in Nashville that will produce its all-electric Cybertruck and Model Y crossover.
On Tuesday Tesla CEO Elon Musk tweeted that the company was “scouting” locations to build a new US gigafactory that will produce the Cybertruck and Model Y crossover.
The factory would be used to produce Model Y crossovers for the East Coast market. The first Model Y vehicles are being produced at its plant in Fremont, California.
Trade Tesla Inc - TSLA CFD
Musk didn’t provide further information in the tweets. However, a source close to the matter said Nashville is on a short list of options.
Tennessee is slowly becoming a hub of electric vehicle production. Volkswagen is spending $800m (€705, £619) to expand its US factory in Chattanooga and turn it into the company’s North American base for manufacturing electric vehicles.
Electric vehicle production at the Tennessee site will begin in 2022, VW said.
At the same time, Nissan has been producing the Nissan Leaf in Smyrna since 2013.
Tesla already assembles its Model S, Model X and Model 3 vehicles in Fremont at a factory that was once home to GM and Toyota’s New United Motor Manufacturing operation. Tesla acquired the factory in 2010 and the first Model S was produced at the factory in June 2012.
In June 2014 Tesla opened its first gigafactory on land near Reno, Nevada. The structure, which has surpassed 1.9 million square feet, is where Tesla produces battery packs and electric motors for its Model 3 vehicles. The company has a joint venture with Panasonic, which is making lithium-ion cells.
Tesla also has a gigafactory in Buffalo, New York where it’s producing solar cells and modules.
In 2018, Tesla struck a deal to build a factory in Shanghai. The China factory started producing the Model 3 late last year with first deliveries starting in early January.
Tesla is now preparing for another factory near Berlin. Once complete, the German factory will produce the Model 3 and Model Y for the European market.