Tesla (NASDAQ:TSLA) is searching for a location to break ground on a factory for its recently announced Cybertruck, the electric-car maker's CEO said in a tweet on Tuesday evening. The factory would be somewhere in "central USA," according to Elon Musk. In a follow-up tweet, Musk said Tesla is also looking for a second location for Model Y production -- this one on the East Coast.
If these new factories are built, they will add to the company's already growing production capacity.
Increasing production capacity
Tesla has been investing aggressively in production capacity recently. Of the company's $1.33 billion in capital expenditures in 2019, most of the amount went toward Gigafactory Shanghai construction, Model 3 production, and preparations for Model Y production.
Tesla finished 2019 with annual production capacity at its factory in Fremont, California, for 90,000 combined Model S and X units and 400,000 combined Model 3 and Y units. In addition, the company's newest factory in Shanghai, China, can produce 150,000 Model 3 vehicles annually.
Aggressive investment in production capacity is continuing in 2020. With Tesla planning to begin deliveries of its Model Y vehicle this month, the automaker has been adding capacity for more vehicle production at its factory. Tesla said in its fourth-quarter update that it was adding the required machinery to its factory in Fremont to get total annual Model 3 and Model Y production at the factory to 500,000 units by mid-year.
More growth ahead
It's unclear what annual production capacity Tesla would aim to achieve in a factory for its fully electric Cybertruck or at an additional factory for the Model Y -- the electric-car maker's lower-cost and smaller SUV. But Musk is notably bullish on both vehicles' potential. In Tesla's fourth-quarter earnings call in February, the CEO said he thinks Tesla will sell as many Cybertrucks as it can make. "I have never seen actually such a level of demand as this -- we've never seen anything like it basically," Musk said. In addition, Musk has said he believes annual Model Y deliveries could eventually exceed a million units.
For the full year of 2020, Tesla expects total deliveries to easily exceed 500,000 units, up from about 368,000 in 2019. Growth is expected to come from a combination of a further increase in Model 3 deliveries and the launch of Tesla's Model Y.
Tesla doesn't plan to start producing its Cybertruck until late 2021.