Tesla receives permits to start construction of Giga Mexico

Tesla the received the necessary permits to start construction of Giga Mexico in the northern border state of Nuevo León. With the permits in hand, Tesla could start construction as soon as this month.

According to a report from the local news outlet Milenio, Mexico’s Secretariat of Environment and Natural Resources (SEMARNAT) has informed Tesla’s manufacturing division that the necessary permits for obtaining final authorization from the Federal Government have been granted. (via Reuters) Even though the permits have been approved, it is unclear when construction will actually begin. The report suggests groundbreaking could take place in the next few weeks, although the exact timeline now rests in Tesla’s hands, and not the local authorities.

Tesla first announced Giga Mexico at Investor Day in March. The expansive site, covering approximately 261 hectares (645 acres) in the northern border state of Nuevo León, was recently purchased by Tesla, with the company expected to invest more than $5 billion to build the Gigafactory.

The government of Nuevo León also recently committed over $130 million to infrastructure development, including a power substation, gas pipeline, rail branches, roads, and water and sewage services. Governor Samuel García of Nuevo León projects that Giga Mexico, along with related suppliers, will inject around $15 billion into the local economy over the next two years.

With the permits in hand, vehicle production could begin in 2025, if construction starts soon. However CEO Elon Musk revealed recently the company is taking a more cautious approach to the project due to the current economic conditions, especially the high interest rates, so it would not be surprising to see construction start in the first half of 2025.

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