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Tesla's Giga Mexico Announced - What Vehicle Will It Build?

There are reports that Tesla is going to build a giga factory in Mexico, about 360 miles south of Giga Texas. The big question that I think people should be asking is: What vehicle will Tesla build here?

Tesla's Giga Mexico Announced - What Vehicle Will It Build?

There are reports that Tesla is going to build a giga factory in Mexico. These reports are likely true as just a few months ago, Elon Musk was shown visiting Monterrey, Nuevo Leon, Mexico, the location where this giga factory is reported to be built.

This is good news for Tesla and the future of EVs, but there is a big question that I think people need to be asking. And that question is, what vehicle will be built at this giga factory? I don't think it can just be more Model 3 and Model Y vehicles. It's going to have to be something else.

The Vehicle Built at Giga Mexico

I think the vehicle that will be built at Giga Mexico is going to be Tesla's $25,000 compact vehicle, also known as the Model 2. This Model 2 vehicle is very important for Tesla to reach more of the broader vehicle market. For instance, someone can buy a Toyota Camry LE right now for about $27,000 and Tesla is going to need to tackle that market.

The Model 2 is different from the robotaxi vehicle that Tesla mentioned at the Tesla semi delivery event. That vehicle, I believe, will be dedicated to robtaxi and FSD and not have a steering wheel, pedals, or anything to interact with except the center screen. Tesla is banking on the future of FSD and its self driving technology to be able to allow this car to drive by itself.

The reports of this new giga factory should calm the minds of those investing in Tesla who are worried about it not making a compact vehicle to address the lower end market of vehicles. In fact, Gary Black, has said just as much on his Twitter account:

Tesla must build an affordable vehicle at this giga factory. In fact, I think Tesla should dedicate the entire giga factory to building ONE and only one vehicle - the Model 2 or whatever the name ends up being.

Many vehicle manufacturers are in Mexico and it makes sense for Tesla to be there too:

Do you think there will be a new giga factory in Mexico? Will it build the Model 2?

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Gary Black, Screenshot