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Tesla to Invest in Mexico


Tesla CEO Elon Musk confirmed that Tesla plans to build a Gigafactory in Monterrey, Mexico during the Investor Day conference held on March 1 in Austin, Texas. Tesla will create up to 6,000 jobs in Nuevo Leon and is considering producing batteries as the electric vehicle maker eyes further investment. 

The new plant, along with expansions at existing facilities, could raise manufacturing to about 3.5 million cars a year, Tesla said during an investor meeting. Tesla will adhere to a series of commitments to address water scarcity, according to the President of Mexico, Andres Manuel Lopez Obrador. 

 “I want to thank Mr. Elon Musk, who was very respectful and understood the importance of addressing the problem of water scarcity,” he said. The President added that Tesla agreed to use recycled water at the plant throughout the entire vehicle manufacturing process.

The President of Mexico celebrated this announcement and said many good things will come. 

“This is going to mean a considerable investment and many, many jobs,” the President said. “My understanding is that it will be very big.”

The Mexican plant would produce its next-generation vehicle, a lower-priced car. 

As of 2022, Tesla projected an installed annual capacity of around 1.9 million vehicles, and Musk has speculated Tesla will need 12 gigafactories in total to produce 20 million vehicles a year.

Tesla did reveal earlier today that it built its four-millionth vehicle, a huge milestone though a fraction of its goal to hit that 20 million annual run rate.

“There is a clear path to a sustainable-energy Earth. It doesn’t require destroying natural habitats. It doesn’t require us to be austere and stop using electricity and be in the cold or anything.” He added, “In fact, you could support a civilization much bigger than Earth, much more than the 8 billion humans could be supported sustainably on Earth.”

In addition to this announcement, Tesla is also expanding in California. 

Tesla is expanding its footprint in California with a new global engineering and AI HQ in Palo Alto

California leads the nation’s ZEV market with nearly 1.4 million ZEVs sold – 40% of the nation’s total. 

California Governor Gavin Newsom joined Elon Musk on a tour of Tesla’s new global engineering and AI headquarters in Palo Alto. Since 2009, California has supported Tesla to help create the future of the zero-emission vehicle (ZEV) market. Now, California will remain the home of Tesla as its new global engineering and AI headquarters work to develop the technology of the future.

Governor Newsom said: “The future happens in California first. We’re changing the world through our historic investments, our conveyor belt for talent, and partnerships with companies like Tesla. The state continues to be the world’s innovation hub, charging the electric vehicle revolution, and dominating the industry in every category – all while keeping the same goal in mind: ensuring a cleaner, greener, and healthier place to live for future generations.”

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