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Tesla is planning at least three more Gigafactory locations

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Model 3 preparations are ‘on track,’ volume production by September

Tesla Gigafactory
Gigafactory 1
Photo by Jordan Golson / The Verge

Tesla is planning to finalize the locations for three more Gigafactories later this year, the company revealed in its shareholder letter for the fourth quarter of 2016. The company has two Gigafactories currently, the enormous one in Nevada that we visited last year, and a facility in Buffalo where Tesla and Panasonic are building solar panels.

In the letter, Tesla said that it “expects to finalize locations for Gigafactories 3, 4, and possibly 5.” Gigafactory 1 is currently focused on production of Tesla’s Powerwall and Powerpack energy storage products, and “2170” battery cells for use in those storage systems as well as the upcoming Model 3.

Tesla received 49 percent more global net orders for vehicles in the December quarter than it did the year before, producing 24,882 vehicles and delivering 22,252. It anticipates delivering 47,000 to 50,000 Model S and Model X vehicles in the first half of 2017, a rise of 61 percent to 71 percent versus 2016.

Tesla Model 3 Gallery Photo: Tesla

Elsewhere in the letter, Tesla said it is “on track” to start limited Model 3 production in July, with a ramp up of production to 5,000 vehicles per week in the fourth quarter of 2017, and 10,000 per week in 2018.

Tesla is scaling back its customer acquisition spending for its solar panel business through a reduction in advertising and an initiative to sell solar through Tesla’s existing stores, as well as a shift from leasing to selling solar panel systems. The company anticipates production of its solar roof product to begin in the latter half of 2017.