Source on Tesla Giga Mexico: "They Tell Me That Nothing Can Be Said Until..."

Tesla's new headline is about the highly anticipated Gigafactory Mexico. On September 15, Tesla is set to deliver a formal letter of intent, marking the official commencement of the installation and buildout of Gigafactory Mexico. This move has sparked excitement and speculation about what lies ahead for Tesla's operations in Mexico.

Formalizing Gigafactory Mexico

The news of Tesla's impending submission of a letter of intent was first reported by Milenio, a reputable Mexican news source. According to a source cited by the publication, Tesla is taking a cautious approach, ensuring that all formalities are in place before making any public announcements regarding the Gigafactory's startup. This level of discretion is not surprising, given the significance of this development for both Tesla and the Mexican automotive industry.

"On Friday (today) they will give us the letter. They tell me that nothing can be said until they have the letter that makes it official (the start-up of the Gigafactory,)" a source reportedly told Milenio.

Tesla's Governor Connection

Adding to the intrigue surrounding Gigafactory Mexico, the Governor of Nuevo León, Samuel Garcia Sepulveda, has played a prominent role in teasing and promoting this venture. Through his personal Instagram account, Governor Sepulveda revealed that he had invited several Tesla executives and Mexican government officials to his residence. In his own words, "I am also about to receive the start-up of the Gigafactory from Tesla…We are going to start with the whole issue of water, it is treated water, from the train and adaptations and access to the highway, highway (Monterrey-Saltillo) to the plant, so pure good news, we are working with everything."

Governor Sepulveda's involvement not only underscores the importance of Gigafactory Mexico for the region, but also highlights the collaborative efforts between Tesla and the local government to ensure a smooth start to operations. This aligns with Tesla's global strategy of working closely with local authorities to address infrastructure and regulatory challenges.

Parallels with Giga Berlin

One intriguing aspect of the Gigafactory Mexico development is its similarity to Tesla's experience with Giga Berlin in Germany. In the case of Giga Berlin, obtaining permits for water usage and supply, as well as transportation, proved to be significant challenges for Tesla. Even after the factory's construction began, water-related issues remained a topic of discussion. In fact, at some point Tesla wanted to drill for its own water at Giga Berlin using a loophole.

This parallel raises questions about the potential challenges Tesla might encounter in Mexico, particularly regarding water usage and supply. Water is a critical resource for any manufacturing facility, and ensuring a sustainable and responsible approach to water management is essential. It will be interesting to see how Tesla navigates these challenges and whether they draw from their experience in Giga Berlin to address them effectively. Elon Musk has confirmed that Tesla Giga Mexico will use less water than any auto plant in the world.

Why It Matters

The establishment of Gigafactory Mexico holds immense importance for several reasons:

1. Regional Economic Impact: Gigafactories have a track record of significantly boosting the local economy by creating thousands of jobs and attracting ancillary businesses. This venture has the potential to do the same for the Nuevo León region.
2. Tesla's Global Expansion: As Tesla continues its global expansion, this Gigafactory serves as a crucial piece of the puzzle. It signifies Tesla's commitment to meeting the growing demand for electric vehicles not only in Mexico but also in the broader Latin American market.
3. Environmental Responsibility: Tesla's emphasis on treating water and addressing environmental concerns aligns with their commitment to sustainable practices. The way they handle water-related challenges in Mexico will be closely watched, given the importance of water conservation in today's world.
4. Government Collaboration: Governor Sepulveda's active involvement demonstrates the significance of government and private sector collaboration in advancing sustainable and innovative industries. It sets an example for other regions and governments looking to attract high-tech manufacturing facilities.

The pending submission of a formal letter of intent for Gigafactory Mexico signifies a promising step forward in Tesla's global expansion strategy. It also highlights the collaborative efforts between Tesla and the local government to address potential challenges. Drawing parallels with Giga Berlin, it's clear that water-related issues could be a focal point in the coming months. However, with Tesla's commitment to sustainability and innovation, they are well-positioned to navigate these challenges effectively.

As we await further developments, it's essential to keep an eye on how this venture unfolds and its broader implications for the automotive industry, the regional economy, and sustainable manufacturing practices. Gigafactory Mexico is poised to be a significant milestone in Tesla's journey toward becoming a premier destination for electric vehicle production and innovation.

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube. He has more than a decade-long expertise in the automotive industry with special interest in Tesla and electric vehicles.