Tesla’s Giga Mexico attracts $1 billion investment from Chinese Suppliers

The financial impact of Giga Mexico on the country is starting to show as officials confirm Tesla’s Chinese suppliers are investing almost a billion dollars in the hosting state alone.

Tesla is building a Giga Factory in Nuevo Leon, where it was expected to produce its next-gen cars. The factory, according to state governor Samuel Garcia Sepulveda, will attract two of Tesla’s Chinese suppliers to make investments of about $1 billion in the state. Ningbo Tuopu Group is committing $700 million, while Hesai Technology will invest $260 million.

Ningbo Tuopu Group plans to start production in Mexico by the end of 2023. The Chinese company produces auto parts, including shock absorbers. Hesai Technology supplies lidar light sensors used for self-driving vehicles and robots, Reuters reports.

Tesla itself may spend up to $5 billion building the factory. However, Tesla has since moved the production of its next-gen platform to Giga Texas for better supervision.

Sepulveda revealed Tesla already procures batteries, computers, and other parts from his state, even before Giga Mexico’s construction starts. The state will gain up to $15 billion in new investments in the first two years of Giga Mexico becoming operational.

Sepulveda is on a working tour of Asia and is stopping at Giga Shanghai to learn from their processes and best practices. He has already visited Tesla’s Giga Berlin, Giga Texas, and the Fremont factory.

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