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Tesla’s Mexico Gigafactory Will Reportedly Cost $10 Billion, Could Be Announced As Soon As This Friday

Last week we got reports suggesting Tesla has chosen Mexico as the site for the company's next Gigafactory. And today we have gotten further details regarding Giga Mexico including the fact that the plant when fully built out could cost as much as $10 billion and that Tesla is looking to announce it as soon as this Friday.

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Tesla is currently undertaking a significant expansion of the company’s production capability. Tesla is simultaneously ramping production at a new Gigafactory in Gruenheide Germany and Austin Texas; the EV maker is also expanding production capacity at its Fremont, California plant and Shanghai Gigafactory.

According to Elon Musk, by the end of 2022, the EV maker plans to reach a production run rate of 2 million vehicles a year. And by 2030 the company plans to grow this number to 20 million vehicles a year. Elon Musk in the past has also said, Tesla plans to at least have one Gigafactory in every continent the company sells its vehicles.

Due to Tesla’s ambitious growth plans, the EV maker is looking at several countries to pick the location for the company’s next Gigafactory. This has meant sporadic reports claiming Tesla has chosen a certain country to build a new Gigafactory.

The first rumors began with reports claiming Tesla has chosen Karnataka, India as the site for the company’s next Gigafactory. The rumors cite Karnataka state Chief Minister BS Yediyurappa who said in a statement “American firm Tesla will open its electric car manufacturing unit in Karnataka.”

Related news: Elon Musk Dismisses Growing Calls By Tesla Investors’ To Take Measures Against Him For Twitter Shenanigans

Following, there were reports stating Tesla had chosen Indonesia as the site for the company’s next Gigafactory. These rumors began due to Tesla’s Battery Day announcement that the company plans to significantly increase its nickel consumption and the mineral’s abundance in the country.

And last week Reuters came out with a report suggesting Tesla has chosen Mexico as the site for the company’s next Gigafactory. This report was further corroborated by the news that the EV maker has secured land for the new factory in Nuevo Leon, Mexico.

Adding to the likelihood of the reports was also the fact that a few months ago Elon Musk was spotted visiting Monterrey, Nuevo Leon, Mexico, and talking with the Undersecretary of Investment of the state economy. At the time it was reported that the Undersecretary had invited Musk to invest in Nuevo León.

This is certainly exciting but, there is still a lot we don’t know about Giga Mexico, including when Tesla will officially announce the plant and how much the plant will cost.

That is at least until today. According to a report by the Mexican publication Reforma, Tesla is slated to announce Giga Mexico as soon as Friday. Citing unnamed sources, Reforma also suggests for the initial phase of the factory Tesla is looking to spend between $800 million and $1 billion, but the investment could eventually grow to as much as $10 billion with planned future expansions.

Reforma also states that if Tesla does not announce Giga Mexico by Friday, the EV maker will announce the plant in January.

According to earlier reports Giga Mexico in its initial phase is slated to build components for existing Tesla vehicles, but there is also a possibility that Tesla will use the plant to build the company’s upcoming robotaxi which will have a staggeringly low starting price of $25,000.

Currently, beyond reports citing unnamed sources and speculations, there is still no concrete information regarding Giga Mexico. However, we will be sure to keep you posted once we learn more about Tesla’s plans.

Until then, make sure to visit our site torquenews.com/Tesla regularly for the latest updates.

So what do you think? Is Mexico a good location for Tesla’s next Gigafacotry? Also, do you think Giga Mexico will be where Tesla will build the $25,000 robotaxi? Let me know your thoughts in the comments below.

Image: Courtesy of Tesla

For more information check out: Elon Musk to Step Down From Twitter - Will Tesla Get Its CEO Back?

Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.

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