Tesla Inc. is finalizing plans to construct an electric vehicle assembly plant in a commercial area of northeastern Mexico. The announcement of the factory could come as early as next week.
Electric carmaker Tesla $TSLA could announce the construction of a “Gigafactory” in the northern Mexican state of Nuevo Leon as soon as Friday, with an initial investment of between $800 million and $1 billion, local newspaper Reforma reported Monday.
The total investment, taking into account future expansions, could eventually reach $10 billion, sources told the newspaper.
The announcement would follow Chief Executive Elon Musk’s visit to the state, which borders Texas, in October. A source told Reuters then that Musk had met with Nuevo Leon Governor Samuel Garcia and U.S. Ambassador to Mexico Ken Salazar.
“Tesla will come to Santa Catarina. The investment will be finalized in the coming weeks, after the end of the year it will be announced. The commitment is that it must be completed immediately after the start of 2023. We know that it will generate employment and it will be located in the only area available, which is the west of that municipality. It is not possible to inform more, because there is a confidentiality contract,”
according to Milenio‘s sources.
According to persons familiar with the automaker’s plans, who asked not to be named discussing internal business, the plant will be situated in Santa Catarina in Monterrey city, the state capital of Nuevo Leon.
Final details are still being worked out, and one of the persons stated that both the state government and Mexico’s foreign affairs ministry have been involved in the discussions with the corporation.
| SOURCE | BLOOMBERG
