Tesla Cancels Fremont Expansion, Shifts EV Production Plans

Описание: #Tesla,#TeslaFremont,#TeslaExpansion,#EVManufacturing
Tesla Cancels Fremont Expansion, Shifts EV Production Plans

Tesla has confirmed the cancellation of its planned manufacturing expansion at its Fremont facility in California, a project that was expected to significantly increase electric vehicle production and create thousands of new jobs. The decision marks a major change in the company’s production strategy and affects California’s position in the electric vehicle manufacturing sector.

The Fremont expansion was designed to add up to 500,000 vehicles in annual production capacity and create approximately 4,000 new jobs. The project was announced in early 2021 and involved new production lines for next-generation battery electric vehicles, along with upgrades to existing infrastructure. To move forward, Tesla was required to obtain permits and approvals from multiple state and regional agencies, including environmental and regulatory authorities. Despite submitting applications in March 2021 and spending more than 80 million dollars on legal and compliance-related costs, the company had not received approval to begin construction by September of that year.

During this period, Tesla also negotiated with Texas and Nevada for potential expansion opportunities. Both states offered incentives such as tax abatements, expedited permitting, infrastructure investments, discounted electricity rates, and streamlined environmental review timelines. In early 2022, Tesla announced the relocation of its corporate headquarters from Palo Alto, California, to Austin, Texas, citing operational efficiency and flexibility. The company later indicated that it would prioritize expansion in Texas and Nevada, placing the Fremont expansion on hold.

In April 2022, California enacted Assembly Bill 1346, requiring manufacturing facilities to achieve net zero carbon emissions by 2030. Compliance measures included infrastructure retrofits, renewable energy installations, carbon offset purchases, and third-party audits. For a facility the size of Fremont, compliance costs were estimated at more than 600 million dollars. Tesla assessed the combined impact of regulatory delays, labor costs, real estate expenses, and new compliance requirements and estimated that producing vehicles in California would cost about 4,000 dollars more per unit than in Texas, resulting in a projected 2 billion dollar annual cost difference at full production.

In June 2023, Tesla formally cancelled the Fremont expansion and announced plans to redirect investment toward a new Gigafactory in Austin, Texas. The cancellation eliminated the expected 4,000 new jobs and an estimated 30 million dollars in annual local tax revenue. The decision also affected suppliers and related industries, leading to cancelled projects, layoffs, and an estimated loss of more than 15,000 indirect jobs across California’s manufacturing and technology supply chain.

Other manufacturers subsequently announced relocations or production shifts to other states, contributing to job losses and reduced economic activity. California reported a budget shortfall exceeding 23 billion dollars in fiscal year 2024, with proposed responses including spending cuts, delayed infrastructure projects, and increased taxes on remaining businesses. The report also highlights personal impacts on workers and small business owners in the Fremont area, as well as challenges related to meeting California’s zero-emission vehicle targets by 2035.

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