The Nevada governor — Brian Sandoval — has announced that Tesla will produce electric motors for the third model of sedan. Production shall take place at the Nevada Gigafactory.

Sandoval revealed that Tesla founder Elon Musk is expected to pump in an additional $350 million into the venture. The production department will prepare gearbox components and electric motors.

"Tonight I am pleased to announce that Tesla will expand its investment in Nevada by producing the electric motors and gearboxes for the Model 3 at the Gigafactory," expressed Sandoval with absolute delight.

Sandoval also thanked Tesla for following through with its promise to the state, adding that the electric carmaker was instrumental in fueling the economic growth in Nevada.

Thanks to the factory, Sandoval estimates that nearly 550 new job opportunities will open up. Tesla currently employs over 1,000 people and nearly 2,000 construction workers at its Gigafactory.

By bringing the electric motor production to the Gigafactory, Tesla will be able to expand its Fremont factory's footprint.

The company is looking forward to making maximum profit by increasing its production of 500,000 vehicles per year. Unlike the Fremont factory, the Nevada factory covers an area of 3,200 acres. So it definitely offers a huge space for expanding the factory outlet.

A Promising Venture

Tesla previously promised to provide 6,500 jobs as a part of the tax incentives package of $1.4 billion, which the state legislature approved in September 2014. Musk now claims that this number could swell further and the company estimates that the Gigafactory may support 10,000 jobs.

The auto maker claims that this factory outlet shall be the largest in the whole world once its construction is complete. The company also intends to use solar panels on the roof.

The company also intends to create most of the powertrain in Nevada along with the battery. Tesla has already started building the lithium-ion batteries at the industrial center in Tahoe-Reno. With so much in store, the company is also planning to start manufacturing $35,000 Model 3 sedan battery cells in Q2 2017.

The company has prepared an organizational plan according to which it shall ship the electric motor and battery packs to its Fremont factory. These parts would be utilized to begin the Model 3's manufacturing process.

According to the terms of Tesla's deal with the state of Nevada in 2014, the carmaker will not be receiving any incentives on top of the deal. The company, however, will be able to avail tax benefits pertaining to property and sales alongside employment credits.

ⓒ 2021 All rights reserved. Do not reproduce without permission.