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    Tesla could announce construction of a Gigafactory in Mexico

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    There is a possibility that Tesla will announce the construction of a Gigafactory in Nuevo León, with an initial investment of between 800 million and 1,000 million dollars.

    The electric car maker’s total capital injection – taking into account future expansions – could reach $10 billion.

    The announcement would follow Chief Executive Elon Musk’s visit to the state of Nuevo Leon, which borders Texas, in October of this year. A source told Reuters Musk had met with Nuevo Leon Gov. Samuel Garcia and U.S. Ambassador to Mexico Ken Salazar.

    The Mexican Gigafactory, planned on the outskirts of the city of Monterrey, would start building components for current Tesla models, and possibly build the brand a new model at a lower cost than other factories.

    According to Reuters, if the announcement is not made this week it could be made in early January 2023.

    It is true that the North American automaker has several suppliers in the state, so the company would be interested in settling in that region to have greater proximity to its supply chain.

    For Tesla to achieve its goal of increasing its global production to 20 million vehicles annually by the end of the decade, the company needs to have 12 Gigafactories, which means it must announce eight new ones within the next few years.