Tesla & its Suppliers Are Investing $15B in Mexico, per Governor

Tesla & its Suppliers Are Investing $15B in Mexico, per Governor

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Tesla and its suppliers are investing $15 billion in Mexico, according to the governor of Nuevo León. Investments must be received within two years. The state intends to prepare the appropriate infrastructure to support the company's operations.

Governor of Nuevo León, Mexico Samuel Garcia, said Monday that Tesla and its suppliers will invest $15 billion over the next two years. The investment will go into the factory and is three times the initial amount announced for the project.

In March, Tesla CEO Elon Musk said his company would open a gigafactory in Mexico's northern state of Nuevo León. This is part of the manufacturer's efforts to expand its global presence. At the time, Musk did not provide details of the investment, but Mexican officials said the plant would require a $5 billion investment. Speaking at a recent event, Garcia said the facility will now have three times the amount of funding.

“Just Tesla and its suppliers will generate an investment of $15 billion in two years,” the governor said, adding that this “enormous amount” will require the state to spend more on highways and other public works, according to Reuters.

At this time, neither Tesla nor Nuevo León officials have announced a start date for the construction of Giga Mexico. However, activity was already noticed. Last month, Tesla filed an environmental impact statement, an important step before construction.

However, it appears that development in Mexico may not be as fast as expected. It is known that the new factory will have to produce cars on a new platform. However, Musk decided to start production in Giga Texas, according to Walter Isaacson, his biographer. This will be done to ensure that the production of the new car is successful. Tesla's best engineers are in Austin, so it would be wise to first learn to make them where the best talent is.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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Article edited by @SmokeyShorts; follow him on Twitter


About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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