Tesla to invest over $5 billion in Mexico gigafactory

Published March 1st, 2023 - 06:45 GMT
Telsa to invest in Mexican gigafactory
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ALBAWABA — Mexico's government announced on Wednesday that Tesla had chosen the northern state of Nuevo Leon for its first Mexican gigafactory worth more than $5 billion, expected to be the largest electric vehicle plant in the world.


Elon Musk, co-founder and chief executive officer of Tesla, is expected to give more details as he reveals his "Master Plan 3" at Tesla's highly anticipated 2023 Investor Day, in a live stream from the automaker's Texas Gigafactory, also serving as the site of Tesla's corporate headquarters.


Tesla selected Nuevo Leon due to its proximity to the company's headquarters in Austin, Texas, said Martha Delgado, undersecretary for multilateral affairs and human rights at the Mexican ministry of foreign affairs.


"It's six hours away. This closeness was very good for them," Delgado told Mexican television, noting that the factory would be about 200 kilometers from the US border.


The factory will employ 5,000 to 6,000 people, Delgado added, noting that Telsa is also considering producing batteries in the country as it eyes further investment, adding that the Mexican government was working with Tesla on a portfolio of investments.


Mexico, the world's seventh-largest automobile producer, sees its lithium deposits as central to its goal of playing a major role in the production of batteries for electric cars and other technology.


According to Delgado, Tesla had also scouted sites in the central states of Hidalgo, Queretaro and Puebla, areas that could still be options for electric battery production.


"We brought to Mexico an investment of more or less $5 billion for the construction of the largest electric vehicle plant in the world," Delgado said in a tweeted video.


Later posting from the Benito Juárez International Airport in Mexico City that she was going to Austin, Texas, to witness the announcement.


According to the latest available figures from the Mexican Automotive Industry Association, the country produced three million vehicles in 2021.


The Tesla factory’s production will focus on smaller cars for the Mexican market and for export, Mexican officials said.


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