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News About Tesla's New Gigafactory Near Mexico City Airport Doesn't Make Much Sense

News about Tesla’s new gigafactory near Mexico City airport doesn’t make much sense 7 photos
Photo: What's inside? Family via YouTube
Tesla FremontTesla FremontTesla FremontTesla FremontInside Tesla GigafactoryInside Tesla Gigafactory
After rumors about a Mexican gigafactory in December last year, Mexican government officials spoke about a production facility near Mexico City’s newly opened airport. According to a Mexican presidential spokesperson, Tesla will invest there to export directly by air, which doesn’t make sense.
Tesla is looking to expand its manufacturing footprint, and many countries are competing for the next gigafactory location. But besides wishful thinking, there is no concrete information about Tesla’s plans. If we were to believe the Mexican authorities, Tesla might setup up not one but two production facilities in the country. A gigafactory in Mexico makes a lot of sense, considering the local car manufacturing prowess and favorable labor costs. Nevertheless, the information coming from Mexico’s official channels is often more confusing than revealing.

Last December, Mexican authorities confirmed that Tesla was looking for a site to build a new production facility. This is our only reliable information, considering that Elon Musk met with Nuevo Leon Governor Samuel Garcia and U.S. Ambassador to Mexico Ken Salazar in October. After that, the official Mexican channels went gaga about the potential Tesla gigafactory. Things went so far as to announce that Tesla will break ground in the northern state of Nuevo Leon and invest $1 billion to produce a new affordable model.

Nevertheless, an official announcement was never made, and Tesla filed its Form 10-K document with the SEC without mentioning further gigafactory plans. The document notes that Tesla intends to “increase cost-competitiveness in our significant markets by strategically adding local manufacturing.” The Nuevo Leon factory rumors were later dismissed, and Mexican officials admitted there was no deal signed or planned for the foreseeable future.

Now, Mexican presidential spokesman Jesus Ramirez is telling the Mexican and international media that Tesla all but confirmed a production facility near New Mexico’s newly opened Felipe Angeles airport (AIFA). Not only that, but Tesla would use the location to “export directly by air,” a statement that doesn’t make much sense. Tesla usually uses sea and land routes to ship its vehicles and receive supplies.

“Tesla is looking at investing in that area to take advantage of AIFA,” Ramirez told Reuters late on Monday. Recently, Ramirez also spoke to El Heraldo de Mexico newspaper, saying, “Tesla will invest there in an assembly plant to export directly by air.”

According to Reuters, another Mexican official confirmed that Tesla has been shown the site but has not decided yet. We can say that establishing a production hub close to an airport with the idea of shipping by air is highly unlikely. Air transport is notoriously expensive, and electric vehicles are heavy, so no, it doesn’t add up. If anything, the Nuevo Leon location has more chances to host a Tesla gigafactory, considering its proximity to the U.S. border and Giga Texas.
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About the author: Cristian Agatie
Cristian Agatie profile photo

After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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