Tesla's Next Gigafactory (in Mexico) Will Supposedly Build a New Affordable Model

Tesla’s new gigafactory in Mexico will supposedly build a new affordable model 7 photos
Photo: What's inside? Family via YouTube
Tesla FremontTesla FremontTesla FremontTesla FremontInside Tesla GigafactoryInside Tesla Gigafactory
Tesla is expected to announce the construction of a new gigafactory in the northern Mexican state of Nuevo Leon as soon as Friday. According to Mexican media, the new plant will start by building components for current Tesla models assembled at Giga Texas, but it will eventually produce a new lower-cost model.
Tesla detractors have already announced that demand for the company’s electric vehicles is dwindling. If we’re to believe these people, Tesla will need to slash prices soon to keep people interested in buying its cars. It’s already happening in China, although for a different reason, related to a price threshold for government incentives in the country. Nevertheless, it’s enough for those who short-sell Tesla stock to predict the company’s demise.

Not that Elon Musk would try and fend off Tesla’s prospects. He is too busy fighting petty causes on Twitter, oblivious to what’s happening at his other companies. But the fact that Tesla is ramping up production at all its gigafactories clearly indicates that demand is still not a problem. Not only that, but Tesla is considering erecting new gigafactories around the world. We’ve heard rumors about a new Gigafactory in Asia, with India pressing hard to get the investment.

Nevertheless, the next Tesla gigafactory will break ground in the opposite corner of the world, with Canadians hoping to get Tesla’s investment. Nevertheless, Mexican sources cited by Reuters indicate that Tesla will announce a new gigafactory construction in the northern Mexican state of Nuevo Leon as soon as Friday. The initial investment will be modest, at around $1 billion, but it doesn’t matter because Tesla intends to start by building components for the nearby gigafactory in Austin, Texas. In time, the total investment will reach $10 billion, with the final goal of building an entirely new model in Mexico.

Rumors about a possible Mexican gigafactory have been running wild since Elon Musk met with Nuevo Leon Governor Samuel Garcia and U.S. Ambassador to Mexico Ken Salazar in October. Mexican foreign minister Marcelo Ebrard confirmed for Reuters that Musk has been touring Mexico states scouting locations for the factory. According to the Mexican news outlet Reforma, the future gigafactory will be built in a complex in Santa Catarina, on the outskirts of Monterrey.

If Tesla indeed invests in a new gigafactory there, it would be the largest foreign investment in the state of Nuevo Leon. Tesla’s investment will also be followed by suppliers who want to build facilities near the gigafactory. Real estate brokers confirmed to Reforma that they had received visits from various companies seeking to settle in the area.

The mysterious new EV model that the Mexican media is raving about might as well be the rumored mass market “Model 2” that Tesla is supposedly working on. During the last earnings call, Musk confirmed that a more affordable model is all but guaranteed, with production costs around half of those of the Model 3. Musk said then that the new model would be smaller and would sell in larger quantities than “all of Tesla’s other vehicles combined.”
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About the author: Cristian Agatie
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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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