The famous electric vehicle automaker Tesla is planning to build a new factory in Mexico, joining other carmakers bulking up their presence south of the US border. The new assembly plant is worth over US$5 billion. The main motto of the plant is to broaden EV maker operations outside the US.
Mexico President Andres Manuel Lopez Obrador said that the Tesla company was moving to Mexico to build a big automotive plant for an electric car firm that is 3 hour drive from Texas. They did not announce what models it would produce and so on.
The Mexican officials said that the new factory would be Tesla “gigafactory” that could generate a Semi truck, a Roadster sports car, and potentially other vehicles. Another one said that the plant could produce a kind of sport utility vehicle. Mexico’s government said that “Tesla will give more details about its best-selling SUV called Model Y on Wednesday”.
Mexico’s president’s announcement of the plant in the Monterrey metropolitan area dispelled recent concerns that he could upend the investment by imposing conditions on the Tesla due to problems over a lack of water in the arid border region.
Lopez Obrador told the media that This will represent a considerable investment and many jobs, saying Chief Executive Elon Musk had been receptive to Mexico’s concerns and made required commitments on how to address the water shortage. So, Tesla recycling water is used in the assembly process.
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Mexican Deputy Foreign Minister told that the investment was worth “about US$5 billion”, and that Tesla would produce about 1 million vehicles a year there for domestic and international markets. Separately, a Mexican source with knowledge of the matter said the initial investment will be worth around US$1 billion and further phases could bring total spending to US$10 billion.
Tesla has car factories in the US states of California, Texas, Berlin, and Shanghai. Musk has been saying that the EV maker will announce a new factory, and he is set to discuss expansion plans, next-generation vehicle platforms and other topics at an “Investor Day” event on Wednesday.