Giga Texas. Source: Tesla
Tesla has settled on Mexico after months of speculation on the location of its next EV Gigafactory. It will be located in Monterrey, Mexico.
Details of the new facility in Mexico are yet to be announced by Tesla but the president of the country, Andrès Manuel Lopez Obrador, told reporters of the news at a press conference.
“There is already an understanding, yes they are going to dedicate the investment to Mexico and the plant is going to be established in Monterrey with a series of commitments to face the problem of water scarcity,” he said.
For many months, Mexico was rumoured to be in close discussions with Tesla to get its next EV production factory based there.
Some speculation was that it would be in the state of Nuevo Leon. This announcement confirms that this is the case given Monterrey is located in that state.
The new facility in Mexico will be located about 620 km southwest of Tesla’s current largest Gigafactory in Austin, Texas.
This is important for localised production if the plant’s supply base is local. This reduces the distance travelled by parts for Tesla’s EVs to get to the factory for installation onto the vehicles.
Many of the parts suppliers are likely to be located between the two factory locations making it most cost-effective to produce vehicles at the Texas plant and in the near future in Mexico.
The Texas factory was officially unveiled back in 2020 and completed the construction completed in April 2022. By the end of the year, the factory was producing 3,000 Tesla Model Ys a week.
GigaTexas construction continues to this day as the Cybertruck production preparations continue. This will be the facility that will be building Cybertrucks in the coming months and years.
The announcement comes just a day before Tesla’s highly anticipated investors day.
That’s where the general emphasis by Elon Musk and the Tesla team is on scaling. The new factory will most certainly be part of Tesla’s scaling of EV production at a global scale.
Along with that, there would be more announcements on various products including the upcoming next-generation vehicle platform.
The next 24 hours will be quite exciting as Tesla unveils what it considers the electrified future of the planet would look like.
Riz is the founder of carloop based in Melbourne, specialising in Australian EV data, insight reports and trends. He is a mechanical engineer who spent the first 7 years of his career building transport infrastructure before starting carloop. He has a passion for cars, particularly EVs and wants to help reduce transport emissions in Australia. He currently drives a red Tesla Model 3.
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