Tesla Is Planning A $10 Billion Gigafactory In Mexico

Tesla plans to build a new Gigafactory in Mexico’s Nuevo Leon. The automaker may announce the new factory with an initial $800 million to $1 billion investment as early as Friday. The factory will cost Tesla $10 billion once it is completed.

This could be Tesla’s most expensive Gigafactory. Comparatively, the company’s Gigafactory Berlin cost approximately $5.5 billion.

If the project is approved, it will be situated just outside Monterrey. It will initially be used for components of current vehicles.

The plant could be used later to make a cheaper Tesla model. Elon Musk, the CEO, has promised but has yet to deliver this.

In October, Musk met with Samuel Garcia, Nuevo Leon Governor, and Ken Salazar, the US Ambassador to Mexico.

The border between northern Mexico and Texas is small. Texas is where another of Tesla’s Gigafactories is located.

The company spent $1.1 billion on the Austin, Texas, factory. Now, they are building 3,000 Model Y electric vehicles per week.

If Tesla can meet the ever-shifting deadline, the facility will also be used to produce the long-awaited Cybertruck.

Marcelo Ebrard, the Mexican Foreign Minister, stated earlier this month that Musk had visited three Mexican states before settling on Nuevo Leon.

If the project is successful, it will become Tesla’s sixth Gigafactory after California, Nevada, and New York.

This could be the first Tesla electric car built entirely in Mexico. Other automakers, such as GM with its upcoming Blazer EV and Ford with its Mustang Mach-E, are doing it already.

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