A recent meeting with Tesla employees revealed that Gigafactory Nevada is hitting full steam in producing the company’s battery storage products like the Powerwall and Megapack. The Powerwall and Megapack are invaluable components of Tesla Energy, which Elon Musk says could eventually be bigger than the company’s electric vehicle business.
Gigafactory Nevada has undergone leadership changes this year, with the departure of former Gigafactory vice president of operations Chris Lister this summer. In his place is Hrushikesh “Hrushi” Sagar, who was promoted to oversee Giga Nevada. Sagar, who also oversees the Fremont plant, will report directly to CEO Elon Musk.
On Thursday, Sagar held a meeting with hundreds of Gigafactory employees. During the meeting, the audio and documents of which were shared with CNBCSagar and other Tesla executives talked about leadership changes, plant milestones and some ambitious goals for Tesla’s facilities.
EV ramp support
Gigafactory Nevada does not produce vehicles, unlike Giga Shanghai, Giga Berlin and Giga Texas. Instead, the facility is responsible for producing 2,170 batteries and powertrains that are used in the Model 3 sedan and Model Y crossover. Gigafactory Nevada also produces key Tesla Energy products such as the Powerwall, a battery for residential customers, and the Megapack, a battery designed for commercial use.
Sagar noted that the Fremont plant is on a roll, producing 134,000 vehicles in the second quarter of 2022. He added that Fremont is now able to produce 12,000 vehicles per week, and the plant is looking to increase that figure. to 14,000 cars per week. Giga Nevada, on the other hand, produced 283,473 powertrains in the second quarter of 2022, allowing the facility to “power” the company’s vehicle production facilities.
Sagar clarified that while he doesn’t plan to spend most of his time at Giga Nevada, he plans to work closely with key people at the facility, such as energy manager Matt Reddick and the site manager Eric Montgomery, who noted at the meeting that August 2022 was Giga Nevada’s second-best production month, just behind October 2021. Montgomery also noted that Giga Nevada must achieve steady production of 8,800 batteries high voltage per week to support the company’s aggressive vehicle production plans.
Powerwalls and megapacks
Powerwall production at Gigafactory Nevada is in full swing, with installation exceeding 6,500 residential battery system units per week. Montgomery noted that Giga Nevada produced 37,600 Powerwalls in Q2 2022, and that’s expected to increase 22% in Q3 2022. Reddick, for his part, noted that Tesla is on track to produce 442 Megapack batteries for the third trimester. If successful, this would represent an 85% growth in Megapack’s production compared to the previous quarter.
During the meeting, questions were asked about the potential location of the company’s next Gigafactory. Although Sagar noted that he was not free to reveal confidential information about Tesla’s plans, he noted that the company has candidates for the location of the next Gigafactory. “I have an idea about the candidates, but I don’t think I’m free right now to release those candidates because of the confidentiality of some of these things. There’s an exciting future for North America and all over the Americas,” Sagar said.
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