The investment for Tesla’s under-construction gigafactory in northern Nuevo Leon state has significantly increased from previous projections. On Monday, Nuevo Leon Governor Samuel Garcia announced that Tesla and its suppliers are set to invest $15 billion over the next two years. This is three times the $5 billion figure previously stated by Mexican officials, reports Reuters.
Earlier in March, Tesla CEO Elon Musk had revealed plans to inaugurate a gigafactory in the region, emphasizing the electric car giant’s ambition to broaden its international reach. Musk, however, did not provide specific details on the investment amount at the time.
Governor Garcia, during a recent event, elaborated on the new figure. “Just Tesla and its suppliers will generate an investment of $15 billion in two years,” he stated. This “enormous amount” will necessitate increased state spending on infrastructure improvements, including highways and other public projects.
Tesla’s decision to set up shop in Mexico comes as major automakers like BMW, General Motors, and Ford ramp up their electric vehicle production in the country. As the auto industry pivots towards electric vehicles, Mexico’s massive automaking sector is seeing a surge in such initiatives.
Although insiders informed Reuters that Tesla aims to kickstart production in Mexico by 2025, the company has yet to confirm the construction start date for its gigafactory or the commencement of its operations. The futuristic factory will be manufacturing Tesla’s next-gen vehicle, a mass-market car said to be in the $25,000 range.