Tesla’s new $1B plant is rising in Mexico

Tesla Inc. is building a new plant and it has confirmed this week that it will soon rise in Mexico. The project is said to be worth at least $1 billion.

The exact location is in northern Mexico and Tesla said this will be its newest assembly plant. The country’s president also mentioned the facility on Tuesday, Feb. 28. This project is said to mark the electric vehicle maker’s push in expanding its operations outside of the United States.

As per Reuters, Mexican President Andres Manuel Lopez Obrador said that the “whole Tesla company” is coming to the country as it is building a massive automotive factory. The leader also noted that the government’s possible investment in EV batteries is still pending.

Another government official said that the building is the next Tesla Gigafactory that can make Roadster sports cars, a Semi truck, and other vehicle models. Then again, they did not say the exact Tesla models that will be produced at the upcoming facility in Mexico but someone said the plant may mainly make sport utility vehicles or SUVs.

The Mexican officials said Tesla is expected to reveal more details about this project this week. Lopez Obrador personally announced the Tesla factory, which will be constructed in the Monterrey metropolitan area. "This will represent a considerable investment and many, many jobs," the president told the media during an interview.

In any case, local business insiders said the initial investment is about $1 billion and this amount is expected to increase in the later phase of the construction and could bring the total expenses to $10 billion.

Finally, BBC News reported that the confirmation of Tesla's plan for its new Mexican factory comes not long after luxury carmaker, BMW, also said it will invest in a factory in Mexico.

Photo by: Tesla Fans Schweiz/Unsplash