Mexico Confirms Tesla Factory Plan and Infrastructure Development

Mexico has confirmed that construction of the Tesla’s Gigafactory Mexico remains as planned. The state of Nuevo León is carrying out infrastructure development requested by the manufacturer at a cost of more than $130 million.

The Mexican state of Nuevo León said on Thursday that Tesla still plans to build a factory in the country. The government has already launched the process of preparing the infrastructure requested by the company, which will be needed, including for the construction of the factory. Nuevo León aims to quickly build infrastructure for water, electricity, gas, and transportation. The government will spend more than $130 million on it.

Santa Catarina’s Mayor, Jesus Nava, said local officials were beginning to improve infrastructure in the area where Tesla is set to build the factory, according to Reuters.

“At the state and municipal level, we’re moving ahead with studies for the infrastructure requested by Tesla, which will amount to more than 2.5 billion pesos ($136.46 million) provided by the state.

“We hope in the first half of 2024 to have the start of Tesla’s construction.”

The announcement comes a day after Elon Musk voiced his concerns about the global economic situation during the Q3 2023 Earnings Call. However, he confirmed that the company will definitely build a factory in Mexico. The company put a lot of effort into studying various locations and chose Mexico. The CEO of the company said Tesla really liked the location and would definitely build a factory there. At this point, the only question is timing.

Musk confirmed that the company has begun laying the groundwork to begin construction in Mexico, and is “doing all the long lead items.” The initial stages of construction are planned for 2024. Another company executive, who was not identified, said Tesla is “working on infrastructure and factory design in parallel with the engineering and development of the new production that we’ll be manufacturing there.”

Tesla planned to spend $5 billion on the factory, which is a very large investment. The manufacturer’s prudence is a reasonable step given the macroeconomic situation.

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