Tesla Motors’ (TSLA) factory in California is set to produce more than a third of the world’s cars by 2040, according to a report published Wednesday by the US auto giant’s research and development firm.
The report, titled “Building the Most Reliable Vehicle Production Facility in the World,” said Tesla’s facility will manufacture the Model 3 sedan, the first car made with the company’s mass production technology.
The company says its first cars will be built in 2019.
The US-based automaker will build a production facility that could eventually produce about 30,000 cars annually, according the report.
The new facility will be located at the former Tesla Research Center, which was built in 1962 and demolished in 2016.
The company said it plans to spend about $1 billion to complete the facility and will begin construction later this year.
It will be able to produce about 15,000 vehicles a year, or about a third the company needs to meet the demand for the Model X SUV and Model 3, the report said.
Tesla’s factory in San Jose, California, opened in 2013.