Gigafactory Mexico (also known as Gigafactory 6) is a proposed

manufacturing plant A factory, manufacturing plant or production plant is an Industry (manufacturing), industrial facility, often a complex consisting of several buildings filled with Outline of industrial machinery, machinery, where workers manufacturing, manufac ...

for

Tesla, Inc. Tesla, Inc. ( or ) is an American multinational automotive and clean energy company. Headquartered in Austin, Texas, it designs, manufactures and sells battery electric vehicles (BEVs), stationary battery energy storage devices from h ...

to be constructed near

Monterrey Monterrey (, , abbreviated as MtY) is the capital and largest city of the northeastern Mexican state of Nuevo León. It is the ninth-largest city and the second largest metropolitan area, after Greater Mexico City. Located at the foothills of th ...

, Mexico, with new vehicle production expected as early as 2026.

Description

The

gigafactory Gigafactory is a neologism introduced by electric vehicle manufacturer Tesla in 2013 to refer to the company's first major manufacturing facility outside of the original Tesla Fremont Factory in California. At the time the facility was going to be ...

is planned to be built near

. The factory will be an approximately investment by Tesla and will employ thousands of workers when fully operational, as well as employ many thousands of workers during construction. Including Tesla and its suppliers, the plant represents a investment. Production is expected to start no earlier than 2026.

History

The facility was officially announced by Mexican President

Andrés Manuel López Obrador Andrés Manuel López Obrador (; born 13 November 1953), also known by his initials AMLO, is a Mexican former politician, political scientist, public administrator and writer who served as the 65th president of Mexico from 2018 to 2024. He se ...

on 28 February 2023. The following day at Tesla Investor Day, Tesla CEO

Elon Musk Elon Reeve Musk ( ; born June 28, 1971) is a businessman. He is known for his leadership of Tesla, SpaceX, X (formerly Twitter), and the Department of Government Efficiency (DOGE). Musk has been considered the wealthiest person in th ...

confirmed the facility. The factory was placed in Mexico in an effort to keep the cost of the vehicle low, and Tesla has encouraged suppliers to open facilities nearby. Samuel García, governor of Mexico's

Nuevo León Nuevo León, officially the Free and Sovereign State of Nuevo León, is a Administrative divisions of Mexico, state in northeastern Mexico. The state borders the Mexican states of Tamaulipas, Coahuila, Zacatecas, and San Luis Potosí, San Luis ...

state, announced in July 2023 that the permits for the factory were nearly ready to be issued and said he expected construction would soon begin. Tesla expected then that the facility would take 12 to 15 months to construct, and had told suppliers to expect the plant to open in the first quarter of 2025. By August 2023, preparation work had only just begun at the site to build an access road onto the property from the highway. Tesla received environmental impact permits for the project in September 2023, with a requirement that construction be completed in 26 months (November 2025). By the end of October 2023, the government of Nuevo León said that Tesla had received all necessary permits to begin construction of the factory. In September 2023, multiple Tesla suppliers indicated that production was not expected to start until 2026 or 2027, and therefore some suppliers were delaying their own plans to build new facilities in Mexico to support the supply line for Tesla in Nuevo Leon. Tesla requested in October 2023 that the Nuevo Leon state government begin building electric, water, road and rail infrastructure to serve the Gigafactory, although Tesla stated in October that they are slowing down their plans for the factory due to global concerns about the

macroeconomy Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. Macroeconomists study topics such as output (econ ...

. , Tesla has placed construction of Gigafactory Mexico on hold until after the

2024 United States presidential election United States presidential election, Presidential elections were held in the United States on November 5, 2024. The Republican Party (United States), Republican Party's Ticket (election), ticket—Donald Trump, who was the 45th president of ...

, because former President Trump has pledged to add tariffs on cars made in Mexico.

References

{{Tesla Motors Tesla factories Motor vehicle assembly plants in Mexico Proposed buildings and structures in Mexico Companies based in Monterrey

Description

History

See also

References