Tesla is on the brink of beginning production of its first cars in Mexico as early as 2024. The Electric vehicle maker is close to receiving its final permits allowing factory construction to begin in Nuevo Leon near the U.S.-Mexico border. The investment is expected to bring $5 billion in investment and make the factory the world’s biggest to produce Electric vehicles.
Tesla CEO Elon Musk announced the plans to open a “gigafactory” in Mexico last week. The factory will be located in Santa Catarina, next to the state capital of Monterrey, and will span several thousand acres. The factory will produce a “next gen vehicle” and could eventually include components such as chips and batteries.
The green light given to Tesla by Mexican President Andres Manuel Lopez Obrador sent a positive signal to other potential investors. Obrador expressed concerns over scarcity of water, but ultimately backed the project after receiving technical memos about the state’s industrial water supply.
The investment is seen as an “anchor” that will attract Tesla suppliers. Nuevo Leon Governor Samuel Garcia said the President, by authorizing and backing Tesla, sent a message to the world that they should come to Mexico.
Tesla’s arrival in Mexico is an exciting development, as it will bring jobs to the area and increase the number of Electric vehicles available on the market. It could also potentially have an impact on other companies, as it could lead to increased competition in the Electric vehicle market.
Tesla’s production in Mexico could also lead to increased economic activity, as it will bring more money into the country and create more demand for local goods and services. This could lead to a ripple effect in the local economy, creating more jobs and stimulating growth.
Mexico is an ideal location for Tesla’s production due to its proximity to the U.S., its skilled labor force, and its access to raw materials. These factors could help the company further reduce costs and increase production efficiency.
Tesla’s investment in Mexico is an exciting development, as it could bring much-needed jobs to the area and potentially create a ripple effect in the local economy. It could also lead to increased competition in the Electric vehicle market, resulting in more affordable and efficient Electric cars for consumers.