Tesla Mexico Factory: Elon Musk’s $5 Billion Plan, Revealed

Tesla is building a "Gigafactory" in Mexico. This was decided after a series of phone calls between Tesla CEO Elon Musk and Mexican President Andres Manuel Lopez Obrador. Now, Musk has revealed a few details on Tesla's plans.

According to Reuters, the Tesla factory will be worth over $5 billion, with the electric car company planning more investments in Mexico. It will create around 6,000 new jobs. Tesla is currently considering producing batteries in the company.

This new "Gigafactory" is considered the largest in a string of EV investments in Mexico, with BMW, General Motors, and Ford also announcing plans to either begin or step-up electronic vehicle production in the United States' southern neighbor. This is considered a big step as automakers transition away from fossil fuels.

Mexican President Andres Manuel Lopez Obrador stated that Elon Musk is interested in investing more in Mexico, as the two discussed the government's plans to develop the Isthmus of Tehuantepec in southern Mexico during one of their phone calls with each other.

AMLO also said he invited the Tesla CEO to tour the northern state of Sonora, where the Mexican government is building a massive solar energy park. The government is pushing for state-run lithium production.

More details about the Tesla "Gigafactory," as well as the company's significant Mexico investment, will be revealed during Elon Musk's Investors Day event on Wednesday at 4 p.m. EST.

Elon Musk Visited Nuevo Leon Last Year and Talked to the Governor Prior to Tesla Plant Announcement

It seems that Tesla has been planning to open this "Gigafactory" in northern Mexico for quite some time now. The electric car company is planning to open the factory in Monterrey, which is found in Nuevo Leon state. However, late last year, it received a visit from Musk himself.

According to Engadget, the Tesla chief executive not only visited the state on Nuevo Leon but also met with its governor last year. However, there are still concerns regarding the water situation in the area, as northern Mexico is in the midst of a massive drought and water shortage.

AMLO had already voiced these concerns to Musk, but the company had assured him that the factory will be using recycled water for the manufacturing of the electric vehicles, and they will use it even with the paint.

Tesla Planning to Win Back Investors With Mexico Plant

Tesla has been suffering as of late as it has been facing much stiffer competition, especially from established carmakers and relatively younger Chinese manufacturers. That said, the New York Times reported that the proposal for the new Mexico plant has been billed as the company's "Master Plan 3."

During his scheduled presentation to investors, Musk aims to win them back and retain their status as the top EV manufacturer in the world, and the Mexico "Gigafactory" will be playing a huge part in it.

Investors raised concerns about Tesla being too slow to introduce new vehicles and respond to competitors rolling out new EVs, including new models that are much cheaper than many of Tesla's vehicles. However, Musk is slated to announce new battery technology, as well as the company stepping up in the production of its 4680 battery cell.

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This article is owned by Latin Post.

Written by: Rick Martin

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