Tesla Manufacturing Mexico, an offshoot of the renowned U.S. electric vehicle maker Tesla, has approached the Ministry of the Environment and Natural Resources (Semarnat) for environmental clearances. The permits are for the proposed construction of an automotive warehouse in Santa Catarina, Nuevo Leon.
The ambitious project is set to span a vast 260-hectare site situated in the Libramiento area of southwestern Tijuana. Notably, the chosen location is rich in unique vegetation, including rosetophytic desert scrub and microphilous desert scrub. Strategically positioned next to the Monterrey-Saltillo highway, the site promises seamless access and efficient logistics, reports Mexico Now.
This move by Tesla aligns with the rising demand for electric vehicles in Mexico and the broader North American region. The decision to set up shop in Mexico resonates with the ongoing nearshoring trend. Numerous companies are flocking to Mexico, capitalizing on its skilled workforce and its closeness to the lucrative U.S. market.
With an initial investment pegged at US$90 million, this venture is just the beginning. The entire project, once fully realized, is estimated to be worth a staggering US$5 billion.
Tesla announced Giga Mexico back in March, saying the new smaller factory will produce its next-gen electric vehicle, designed for the masses. The automaker is also encouraging its Chinese supply chain to set up factories in Mexico as well.