TESLA rises as battery manufacturing returns to US

“Made in America” was once a big thing. Then globalization set in, which means much less today than it used to. However, there are those who try to breathe more life into the old concept. Electric vehicle manufacturer Tesla is included. Tesla investors aren’t unhappy either, as Tesla was up slightly in trading on February 22 afternoon.

Basically, the US was offering Tesla — and most other electric-car makers willing to comply — a deal they couldn’t refuse: an electric-vehicle tax credit of up to $7,500, TipRanks reports.

For 2023 models, however, there is an important caveat: 40% of the battery’s primary materials and half of its parts must be sourced either directly from North America or a country that has a free trade agreement with the US.

Tesla, meanwhile, is building the necessary battery cells right on US soil at its pilot plant in Fremont, California. Now, it’s moving capacity out of Germany—where it recently established a gigafactory—and bringing it back to the US to take advantage of the tax credits. The gigafactory won’t be mothballed over the effort. Reports suggest that the rest of production on Teslas in Europe will still take place therein. However, the battery packs will travel a bit more to power Europe’s Teslas.

Meanwhile, Tesla’s US battery production isn’t new either; it put $3.6 billion behind an expansion at the Nevada facility to up its battery production therein.