Elon Musk, the CEO of Tesla, said that the company plans to build a new gigafactory in the state of Nuevo Leon, which is in the north of Mexico. The plant, which is expected to cost more than $5 billion, will be the biggest in the world for making electric vehicles. It will help the EV maker increase its output around the world. Tesla’s other gigafactories located in the US, Germany, and China will be supplemented by the factory’s production output. Musk claimed at a recent Investor Day event in Austin, Texas, that the new plant in Nuevo Leon will generate up to 6,000 jobs and that Tesla is considering producing batteries in the country’s centre as it seeks to make additional investments in Mexico.
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The action follows months of rumors and phone calls between Musk and Andres Manuel Lopez Obrador, the president of Mexico. The announcement is the most recent in a series of recent EV investments in Mexico. The second-largest economy in Latin America, with BMW, General Motors, and Ford recently announcing plans. To start or increase EV production there as the auto industry transitions away from fossil fuels. Guillermo Rosales, executive president of the Mexican Association of Automotive Distributors, welcomes Tesla’s investment in Mexico and predicts that it will create jobs, consolidate and grow suppliers, and increase the confidence of other players in the automotive industry to invest in Mexico.
At the event, Tesla also talked about its new ways of running its business, from making cars to providing service. For example, it plans to cut assembly costs in half for the next generation of cars. Musk omitted to mention the investment Tesla made in the Mexican factory or how many cars it would produce annually. At the event, it was said that the company could make 2 million cars around the world every year. Overall, Tesla’s decision to build a gigafactory in Mexico is a big step in the company’s efforts. To make more electric cars available to more people and increase its production capacity. Mexico looks like it will play an increasingly important role in the future of the auto industry. This is because a number of big automakers have invested in the country’s electric vehicle (EV) market.
