Elon Musk Just ANNOUNCED This And It Will SHOCK Everyone!

Elon Musk Just ANNOUNCED This And It Will SHOCK Everyone!

As predicted, yesterday at the Gigafactory Nevada, Tesla unveiled a significant $3.6 billion investment. The new 4680 battery cell plant, which will be housed under the same roof as the future Tesla Semi manufacturing facility as part of an expanded Gigafactory Nevada complex, will be housed under the same roof as the Tesla Semi manufacturing facility, Elon Musk said during a presentation at the plant while Nevada Governor Joe Lombardo was present. Gigafactory Nevada's Phase 2 expansion includes the two newly announced plants, as Elon Musk noted. But what exactly did Joe Biden do that shocked tech billionaire Elon Musk?

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When it comes to the Biden administration's Advanced Manufacturing Production credits, Tesla has stated that it will benefit greatly as it strives to produce 1,000GWh of EV batteries annually.

The credits, which are a crucial component of the Inflation Reduction Act under the Biden administration, are intended to promote the production of specific energy components within the country, such as solar, wind, and qualifying batteries.

The credit is $35 per kilowatt-hour (kWh) for businesses that produce battery cells.

The location of the materials' sourcing is subject to restrictions, nevertheless. Minerals for batteries, for instance, must come from nations like Australia with which the US has free trade agreements.

During the company's Q4 earnings call on Thursday (Australia time), Musk was asked how much Tesla anticipates making from the credits in the upcoming year. Musk responded as follows:

“Long term we expect the value of these credits to be very significant. You can do the math, if we were to get anywhere near 1000 gigawatt hours of production or even a few hundred-gigawatt hours it’s very significant.”
Currently, Panasonic manufactures the majority of Tesla's batteries in the US. Tesla's in-house battery output will be much higher in 2024 as a result of scaling up manufacture of its own 4680 cells this year.

“In the case of Panasonic with its domestic manufacturing (US) we’re splitting the value of the credit. So, the value of the credits this year will not be gigantic but I think it could be gigantic and we think it probably will be very significant in the future.”

Zach Kirkhorn, the CFO of Tesla, continued, "“We think on the order of $US150 to $250 million per quarter this year, and growing over the course of the year so far as our volumes grow”.

By doing the math, the credits would be worth $US2.1 billion if Tesla produced 60kWh battery packs for 1 million vehicles in the US.

Despite the fact that the Shanghai factory in China presently produces the majority of Tesla's vehicles, the company plans to build 1.8 million cars this year globally, so it's possible that the credits will soon be bringing in billions of dollars a year.

The day before the earnings call, Tesla revealed a $US3.5 billion investment into its Nevada factory to expand manufacturing of 4680 batteries and to set up lines for the Tesla Semi vehicle.

Tesla claimed that the expansion will increase the Nevada factory's annual capacity for producing batteries to 100 gigawatt hours, but that this would eventually increase to 500 gigawatt hours.

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