Tesla to Unveil Plans for $3.5B Semi Plant in Nevada

Written by Simon Alvarez, Teslarati
Jan. 24, 2023

In his first State of the State address Jan. 23, Nevada Gov. Joe Lombardo referenced Tesla’s reported plans for a $3.5 billion facility in northern Nevada to produce its Class 8 all-electric truck, the Tesla Semi. 

During his address, Lombardo said the central focus of his economic and business strategy is to reposition Nevada as a state that supports businesses and development. Among the most promising avenues for growth in Nevada, he said, is providing incentives for the development and expansion of new businesses and industries. 

Lombardo said he would be joining Tesla CEO Elon Musk and the Tesla team on Jan. 24 to announce plans to build the facility, The Nevada Independent reported. Lombardo did not say, however, if Nevada would be offering Tesla tax breaks or similar incentives. 

“Our best opportunities for economic growth are providing a pro-business environment for the 350,000 businesses that currently call Nevada home, and offering a pro-development invitation for the expansion of new business,” Lombardo said. “Whether it’s closing the lithium loop, unlocking innovation and investment in logistics, entertainment, science and technology, or embracing entrepreneurship, the message is that Nevada is ready to partner.

“Case in point… I am looking forward to joining Elon Musk and the team at Tesla [on Jan. 24] when they unveil plans to build a brand new $3.5 billion advanced manufacturing facility in northern Nevada for the company’s all-electric semi-trucks. Economic development matters. I’m proud to declare that Nevada is back open for business, effective immediately,” Lombardo said.

Tesla is already operating a facility to produce the Tesla Semi in Nevada. However, the facility, close to Gigafactory Nevada, is only producing low volumes of the vehicle. Musk has said Tesla is aiming for 50,000 Semi units in 2024, so a facility that can produce the truck en masse is needed. 

Nevada and Tesla have developed a close working relationship over the years. In 2014, then-Nevada Gov. Brian Sandoval offered Tesla a $1.25 billion tax incentive package over 20 years to build a factory in the northern Nevada area. Economic experts have credited the region’s successful handling of the pandemic to this economic diversification, which includes the presence of Gigafactory Nevada, a facility that produces 2170 cells for Tesla vehicles like the Model 3 sedan.

We thank Teslarati for reprint permission.

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