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Financial Fact-Check: New gigafactory supports Tesla and Ontario’s EV production goals

Toronto, Ontario – Previously reported allegations of a new major Tesla factory in Ontario have been revealed to have some teeth, with information from multiple sources suggesting that a new Gigafactory aligns with Tesla’s plan to expand production by 13 new factories, and Ontario’s goal to become a global electric vehicle production hub.

While the Ontario government has not released a statement specifically discussing a potential gigafactory, the construction of such a factory wouldn’t be surprising considering the province retooling production towards electric vehicles (EVs) over the past few months.

“Our government has created the right economic conditions to attract yet another historic investment that further positions Ontario as a North American leader in developing and building the cars of the future,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade.

Some of these economic conditions to attract investments include establishing new EV component factories, mining projects to support EV battery production, and installing more EV chargers across the province.

“Through this game-changing investment, GM has deepened their commitment to Ontario and its workers, and advanced Ontario’s drive to become one of the most vertically integrated automotive jurisdictions in North America,” said Fedeli.

Ontario’s focus on becoming an all-rounder in EV production rather than focusing on singular components would fall in line with Tesla’s aim to establish more gigafactories, massive factories the size of three Pentagons that would become the refining, assembly and manufacturing point for all Tesla components and vehicles.

“Things that really define manufacturing competitiveness are economies of scale and technology. And so if you’ve got an ace on the economy, like maximizing your ace level on technology and…scale, this is obviously going to be the most competitive situation,” said Musk in the All-In podcast.

The size of these factories is simply the result of the company trying to maximize Tesla’s economic and technological edge, “and that’s why [Tesla factories] are so freaking giant,” Musk explains.

For our report on Tesla’s original statement, click here.

Do you think Giga Ontario will be a success? Let us know in the comments below.

 

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