Tesla said on Friday that its Nevada gigafactory is on schedule. This is in response to a local newspaper report that the $5 billion battery factory is changing its design, causing the project delay.
The Reno-Gazette Journal first reported that the International Brotherhood of Electrical Workers (IBEW) updated the job posting for its "Project Tiger," the code for Tesla gigafactory.
"The major project in the area has been delayed at this time," said the post on the IBEW Local 401 site. "Further updates will be posted as soon as we know more."
The news came as a surprise because when Tesla released its Q4 financial report, it said that the gigafactory is slightly ahead of earlier projections. Tesla is also estimating that the factory will have the ability to produce 35 gigawatt-hours of cells and 50 gigawatt-hours of battery packs by 2020 to power at least 500,000 cars.
Tesla quickly disputed the report and reiterated that the project is on track and is working with a number of companies and unions. Battery production is expected to begin next year.
"The project is progressing and the gigafactory is on schedule," Tesla spokeswoman Alexis Georgeson told Reuters.
The 10-million-square-foot battery plant is designed to mass produce lithium ion batteries to lower the costs of car batteries and make electric cars cheaper. Tesla plans to use the batteries for its Model S sedan, Model X SUV and Model 3. The company is also looking to hire 6,500 people with a pay of $25 per hour. Nevada residents are prioritized during hiring.