Tesla to Announce New Factory in Mexico as Early as Next Week: Report

Tesla could announce plans to build an electric vehicle (EV) factory in northeastern Mexico as early as next week — reports Bloomberg.

According to the publication’s sources, the EV pioneer is locking down plans for a plant in Santa Catarina in Monterrey city, the capital of the Nuevo Leon state. Tesla is reportedly still ironing out the details of the deal, with talks involving the state government and Mexico’s foreign relations ministry.

Bloomberg‘s tip contradicts a recent report from Mexican news outlet Milenio, which pegged the factory announcement for early 2023. Tesla CEO Elon Musk teased during this year’s annual shareholder meeting that the company could announce the location of another Gigafactory sometime this year.

While many were banking on Canada to be the location of Tesla’s next EV plant, it looks like Mexico has come out ahead. Tesla has a favourable relationship with the Mexican government, which has already netted the company an exclusive customs lane at the Mexico-U.S. border.

News of Tesla’s plans for a Mexican factory comes just days after Mexico and Canada won a trade dispute with the U.S., making EVs manufactured in these regions eligible for government subsidies. The area of Nuevo Leon Tesla is eyeing already hosts factories owned by General Motors and Kia Motors.

People familiar with the matter said that in the coming days, Tesla could also announce which models of its electric vehicles (EVs) it plans to produce at the Mexican factory and when it expects the plant to become operational.

Tesla hopes to produce 20 million cars per year by 2030. Musk has previously said that Tesla’s long-term plans involve having 10-12 Gigafactories across the globe to support that output. The electric automaker’s existing factory in Fremont, California, recently became the highest-yield automotive plant in North America.