How Many More Gigafactories Can Tesla Make With Profit and Stock?

Tesla is trading at a valuation of over $250 billion.

If Tesla has no factory shutdowns they will build another 55,000 cars in future quarters and they are expanding capacity. This could be 160,000 cars in the third quarter and 200,000 cars in the fourth quarter. Tesla has auto margin of 25-30% and quarterly fixed expenses of about $1 billion. Tesla could make $1 billion in profit in the third quarter and $2 billion in the fourth. Tesla has $8 billion in cash.

Tesla could issue stock worth 2% of the company to raise $5 billion. This would be the money needed for another Gigafactory. The Berlin factory will cost about $4.4 billion. The Shanghai factory had an initial cost to Tesla of $2 billion and they had $2 billion in low-interest loans. Tesla could easily raise the funds and use new profits for three or four more gigafactories in 2021 and even more in 2022 and 2023 and so on. If production is 500,000 cars per factory then this would speed up production ramp by 2 million cars each year.

Here is a video of the status of the Tesla Berlin Gigafactory construction. Above is a picture of the Berlin Gigafactory under construction.

Oklahoma and Texas are competing with incentives to get a Cybertruck Terafactory built in their state.

SOURCES- Tesmanian, Tobias Lindh Youtube
Written By Brian Wang, (Brian owns shares of Tesla)