Shipper | Market updates 1 min. read
Tesla plans gigafactory in first Mexico investment
Tesla announces expansion into Mexico.
Tesla to build a new gigafactory in Nuevo Leon
Tesla announced they will expand their output by opening a gigafactory in Mexico. Tesla has chosen to build their new factory in Nuevo Leon. This factory will be worth more than $5 billion, making it "the biggest electric vehicle plant in the world."
At an investor day event in Austin, Texas, Tesla CEO, Elon Musk, stated they plan to increase output in all of its gigafactories. Musk shared that the company has plans to cut assembly costs by half in future generations of cars.
Tesla currently has a plant in the nearby city of Monterrey. This plant will help with the additional output Tesla plans to achieve.
This plant announcement brings the city of Nuevo Leon up to 60,00 new jobs and potentially more in the years to come. Nuevo Leon was selected based on its proximity to Austin, Texas, where Tesla is headquartered.
Tesla’s strategy is similar to many other manufacturer’s in bringing operations to Mexico in an effort to produce product close to the U.S., take advantage of benefits of the USMCA and other North America trade agreements, while having more access to workers.
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