Tesla recently announced plans to set up a new Gigafactory in Mexico. The new Tesla Giga Factory is expected to be one of the largest manufacturing plants in the automotive industry. Confirming the news, Elon Musk’s company revealed an image of the planned site. However, the electric vehicle maker has remained tight-lipped about the manufacturing details. As you know, this new site will be used to produce the new generation of fully electric Tesla cars.
Following the announcement, the Mexican government revealed few details about the Tesla Giga factory. According to previously revealed details, the manufacturer’s factory is spread over approximately 4,200 acres in an industrial zone in the Santa Catarina municipality, near Monterrey (Nuevo León). This Tesla Giga is 68 percent more than Texas (2,500 acres).
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The size of the investment, believed to be $10 billion and 10,000 people ($5 billion and 5,000 initially), represents the scale of the factory. Although details are unknown, this could include the construction of the vehicles and other components such as drivetrains and battery cells.
A Reuters report claims that a top Mexican official has suggested an annual production of one million automobiles. One million units per year could be the initial target, with another million units per year to be added later.
When Tesla Giga Mexico is set up, it will be the company’s third manufacturing plant outside the US, along with factories in China and Berlin. The manufacturer will attempt to duplicate the success of the Gigafactory in Shanghai and Texas, which Tesla was able to bring into production significantly faster.
The fact that Monterey is within a seven-hour drive from Tesla’s corporate offices and Gigafactory Texas is one of the factors that led to the decision. Furthermore, Tesla was able to negotiate an intriguing settlement that would improve transportation between places.