Tesla joins forces with suppliers for a massive $15B investment in Giga Mexico
In a trailblazing development, Nuevo Leon Governor Samuel Garcia has announced that Tesla Motors, in collaboration with its suppliers, is poised to invest a massive amount of $15 billion into the Gigafactory Mexico facility to boost production of its world-famous electric vehicles (EVs). The latest investment amount announced by Governor Garcia represents three times the previous figure that was disclosed by Mexican authorities in March 2023, when the plans for the construction of the mega manufacturing plant were officially confirmed.
When plans for Gigafactory Mexico was initially confirmed, Tesla CEO Elon Musk didn’t reveal about the amount or other investment details. However, at the time, Mexican officials claimed that the American manufacturer planned to invest an estimated $5 billion in the project. Now, Governor Garcia has revealed the aforementioned staggering twist by announcing that the investment amount has ballooned to $15 billion.
Making the revelation during a recent event, Governor Garcia said, “Just Tesla and its suppliers will generate an investment of $15 billion in two years.”
Without elaborating on the substantial increase in the investment amount from the initial projection, the governor stated that the significant financial infusion would necessitate additional spending on infrastructure, especially on highways and public works in his state. Of course, the government of the Mexican state of Nuevo Leon will have provide infrastructure and other amenities to facilitate production of Tesla as well as to attract more manufacturers.
Tesla, the world-renowned manufacturer of battery-powered vehicles, has thus far not revealed any date for the commencement of the mega manufacturing plant’s construction in Mexico. However, some unconfirmed media reports suggest that Tesla aims to initiate EV production in Mexico before the end of 2025.
Giga Mexico is expected to play a pivotal role in the EV giant’s ambitious global expansion plans. While it was originally believed that the company's next-generation vehicle platform, which will reportedly underpin the $25,000 electric car and robotaxi, would be built at Gigafactory Mexico, recent developments point to a big alteration in strategy.
As per Walter Isaacson's recently released "Elon Musk" biography, Mr. Musk has decided to shift the initial production location for Tesla’s next-generation EVs from Mexico to Austin, in the U.S. state of Texas. It suggests that the development and initial production of the EV giant’s next-generation battery-powered vehicles will emerge at Giga Texas before replicating the production lines at Gigafactory Mexico.