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Top 6 tidbits about Tesla’s Gigafactory revealed through building permits

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It’s no secret that Tesla’s $5 billion dollar Gigafactory 1 located just east of Reno, Nevada will be a critical component to the company’s goal of scaling mass production of batteries for its upcoming Model 3 and Tesla Energy product line. We know the Gigafactory will be one of the largest buildings in the world projected to occupy 13.6 million square feet, and we know the factory will be powered by renewable energy sources, with the goal of achieving net zero energy. However, construction permits filed by Tesla provide even more interesting insight to Gigafactory 1 that you may not already know.

Here are the top 6 tidbits of Tesla’s Gigafactory as revealed through building permits received by Tesla. Information is provided courtesy of analyst Jack Cookson of BuildingZoom.

1) July 29 launch event attendees may witness battery cells being made   

Construction permit #0934363 indicates that the $51 million dollar “Battery Cell Manufacturing Equipment Installation” project is estimated to be complete on July 20th. This means that attendees of the highly anticipated July 29 Gigafactory ‘Grand Opening’ event may actually have the opportunity to see battery cells being manufactured.

2) Tesla can do it all

Tesla filed for building permits themselves as opposed to using a General Contractor. According to a report put together by Cookson of BuildZoom,

“Something we found different about this project is that Tesla filed the majority of their own building permits and is actually the contractor for the project. This means, that Tesla had to acquire a contractor license in Nevada and has taken on far more work than if they had just hired a General Contractor.”

This may not be such a bad idea considering Tesla’s recent involvement in a foreign worker scandal under poor supervision and management by factory sub-contractors.

3) Tesla’s Gigafactory is designed for earthquakes

Most buildings rest on a single foundation, however the enormous rectangular shaped Gigafactory rests on four individual foundations. This is designed so that each section of the building can shift independently of one another in the event of an earthquake.

4) The Gigafactory doesn’t stop growing

Tesla received a permit to expand the Gigafactory with a 4th Area ‘D’ and 5th Area ‘E’. The $63 million dollar D and E project is scheduled to be complete by the end of the year. Tesla’s enormous Gigafactory is currently only 14% of the total planned floor space, but will reach an astounding 13.6 million square feet when complete.

Tesla-Gigafactory-Expansion-Drone-4k

Overhead view of Area ‘D’ captured by drone in April 2016

5) Tesla donated a fire truck to the local fire department

Tesla spent a total of $4.7 million dollars on fire safety, including a permit for a fire command center. Part of that included a donation of a fire engine to the local Storey County, Nevada fire station.

6)  Giant refrigerator + water tank twice the size of an olympic pool

1 of the 84 permits filed indicates that the Gigafactory will have a giant chiller yard which will presumably be used for testing batteries while keeping them in a cool state.

The factory also has a a 1.5 million gallon water tank on site that is more than twice the size of an olympic sized swimming pool. Details within the permit do not indicate what this water tank will be used for.

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Cybertruck

Tesla analyst claims another vehicle, not Model S and X, should be discontinued

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Credit: Tesla

Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.

Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.

In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.

The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.

Black said:

IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”

On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.

Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.

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Tesla begins Cybertruck deliveries in a new region for the first time

The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.

The S and X do not fit in these plans.

Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.

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Elon Musk

SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO

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Credit: SpaceX/X

In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.

The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”

Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.

With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.

Tesla announces massive investment into xAI

On January 21, both entities were registered in Nevada. The report continues:

“One of them, a limited liability company, lists SpaceX ​and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”

The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.

SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.

SpaceX IPO is coming, CEO Elon Musk confirms

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The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.

At the World Economic Forum last week, Musk said:

“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”

He also said on X that “the most important thing in the next 3-4 years is data centers in space.”

If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.

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Elon Musk

Tesla hits major milestone with Full Self-Driving subscriptions

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Credit: Ashok Elluswamy/X

Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.

Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.

This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.

In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.

Musk said on X:

“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”

The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.

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It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.

The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.

Tesla is shifting FSD to a subscription-only model, confirms Elon Musk

Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.

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