Tesla Model 3 News: Gigafactory Gets $350 Million To Build Motor For Luxury Sedan

Tesla Motor's enormous Gigafactory near Sparks, Nevada is currently having their expansion for the production of their lithium-ion batteries. Now, the company has plans to invest another $350 million in the said factory for the production of drivetrains, electric motors and gearboxes for the Tesla Model 3.

The announcement was made by Nevada Governor Brian Sandoval during his State Address earlier this week and was later confirmed by Tesla, Futurism reports. "Tonight, I'm pleased to announce that Tesla will expand its investment in Nevada by producing the electric motors and gear boxes for the Model 3 at the Gigafactory," Gov. Sandoval said during his address in which Tesla CTO JB Straubel was among the audience.

The production of the Tesla Model 3 will bring 550 more jobs in the state of Nevada, with another investment of $350 million. This job generation and investment Tesla is going is making competitions among European nations as the electronic car manufacturer plans to create another factory dubbed "Gigafactory 2."

Tesla built their Gigafactory to deal with the shortage of lithium-ion batteries. The electronic vehicle maker will receive tax incentives of $1.3 billion in 20 years from the government of Nevada for the construction of the factory and the employment of 6,500 workers in the state, which will help Tesla reach its job creation goal. Additionally, the company's recent choice will support President-elect Donald Trump's campaigns to boost the creation and employment in the U.S., Yahoo reported.

Tesla CEO Elon Musk's goal is to make 500,000 electric cars, mostly the Model 3, by the end of 2018, and one million by the year 2020. The cars are assembled in their Fremont factory in California, in which the city approved a major expansion for the factory that includes 11 new buildings covering a total of 4.6 million sqare feet of manufacturing space.

The Tesla Model 3's production is still ongoing and rumors say that the car will have Tesla's solar roof technology. The Model 3 will be Tesla's most affordable car yet priced at $35,000 and is expected to roll out later this year.