Tesla CEO and co-founder Elon Musk said Wednesday that the company will invest $1.2 billion in a plant in Pennsylvania to manufacture and sell electric vehicles.

Tesla plans to use $1 million of the $1,000 million loan it received from the U.S. Department of Energy to fund the project, according to a statement from Musk’s office.

The factory will produce the Model S sedan, the Model X SUV, and a fleet of electric buses.

Musk told the Wall Street Journal that the plant would also produce vehicles for Tesla’s electric truck and van fleet.

“This will be an important first step in our plan to move from a production business to one that builds the vehicles that we envision for the future,” Musk said in a statement.

A recent report from Tesla’s former vice president of product marketing, Alex Padgett, said that the electric vehicle manufacturing company is in talks with manufacturers and dealers to bring the plants to the U to make batteries for vehicles.

The company also is considering investing $1 in a lithium ion battery factory in Ohio.

The announcement comes on the heels of Tesla CEO Travis Kalanick announcing plans to invest $50 million in a new factory in Michigan to produce the company’s Model 3, which will be the first fully electric car that will be sold in the U, according the Associated Press.

In a press release on Wednesday, Tesla said it would also invest $5 million in the development of an automated factory to build vehicles in a similar fashion to that of the Model 3 factory.

The automaker’s electric vehicle factory has been a focus of the company since Kalanicks acquisition of Tesla, but the company hasn’t released any details about its plans.

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