Tesla is reportedly planning a $10 billion Gigafactory in Mexico

Tesla is planning to construct a brand new Gigafactory within the Mexican state of Nuevo León, according to Reuters, which cited a narrative within the Mexican newspaper Reforma. The automaker might announce the brand new manufacturing unit with an preliminary $800 million to $1 billion funding as early as Friday, native newspaper Reforma stories.

The manufacturing unit will value Tesla as a lot as $10 billion after completion, together with future expansions, in line with the newspaper’s supply. It might be Tesla’s costliest Gigafactory but. By comparability, the corporate’s Gigafactory in Berlin cost about $5.5 billion.

If the brand new undertaking strikes ahead, it is going to be positioned simply outdoors the town of Monterrey and can initially be used to construct elements for present autos. Later, the plant might probably be used to fabricate a brand new and cheaper Tesla mannequin — one thing that CEO Elon Musk has teased through the years however has but to ship.

According to a Reuters supply, Musk met with Nuevo León Governor Samuel García and US ambassador to Mexico Ken Salazar in October. The northern Mexican state shares a small border with Texas, which is house to a different considered one of Tesla’s Gigafactories. The Austin, Texas, manufacturing unit value the corporate $1.1 billion to construct and has simply ramped as much as constructing 3,000 Model Y electric SUVs per week. The facility will even host manufacturing for the long-awaited Cybertruck when it begins on the end of 2023 — if Tesla is ready to meet that ever-shifting deadline.

If the information for the Mexican Gigafactory is just not formally introduced this Friday, then it would are available in January, Reforma reported. Earlier this month, Mexican Foreign Minister Marcelo Ebrard mentioned Musk had toured three states in Mexico earlier than deciding on Nuevo León, Reuters states.

If the undertaking strikes ahead, it is going to be Tesla’s sixth Gigafactory following California, Nevada, New York, Shanghai, and Berlin. It is also the primary time Tesla builds an electrical automotive fully in Mexico, one thing that other automakers like GM, with its upcoming Blazer EV, and Ford, with its Mustang Mach-E, are already doing.