Tesla and its suppliers will reportedly make investments $15 billion over the following two years within the Gigafactory Mexico facility, stated Nuevo Leon state governor Samuel Garcia. 

The quantity is triple what Mexican officers beforehand introduced after Tesla CEO Elon Musk stated in March that his firm would open a gigafactory in Mexico’s northern state of Nuevo Leon.

On the time, Musk didn’t supply particulars about Tesla’s funding, however Mexican officers stated the manufacturing unit would contain a $5 billion funding. Now, Nuevo Leon Governor Samuel Garcia stated at an occasion that the ability will contain thrice that quantity. 

“Simply Tesla and its suppliers will generate an funding of $15 billion in two years,” the governor stated in line with Reuters, with out explaining the large distinction over the preliminary estimate. He added that this “huge quantity” would require Nuevo Leon to spend extra on highways and different public works.

Tesla and Nuevo Leon officers didn’t reply to Reuters‘ request for touch upon the governor’s remarks.

Tesla has not introduced a begin date for development of its Gigafactory Mexico or when it’ll begin producing automobiles. Sources beforehand instructed Reuters that the EV maker deliberate to start manufacturing EVs in Mexico in 2025.

Giga Mexico will play an important function within the firm’s efforts to broaden its international footprint. The power will produce Tesla’s next-generation automobile, though the automaker didn’t present extra particulars.

Initially, it was believed that Tesla’s next-gen platform, which is able to underpin each the $25,000 electrical automotive and the robotaxi, may have its manufacturing debut at Gigafactory Mexico, however it appears to be like like there was a change of plans.

In keeping with Walter Isaacson’s just lately launched “Elon Musk” biography, Tesla has determined in Could 2023 to change the preliminary construct location for the next-generation EV from Mexico to Austin, Texas.

Which means improvement and preliminary manufacturing will happen on the Giga Texas manufacturing unit earlier than the working manufacturing strains are replicated in Mexico and probably different locations.

The principle cause for the choice to start out manufacturing of Tesla’s next-generation EV in Mexico is that the corporate’s high engineers are unwilling to relocate to the neighboring nation to develop the manufacturing strains.

Walter Isaacson famous within the e-book that “Tesla engineering will should be on the road to make it profitable, and getting everybody to maneuver to Mexico is rarely going to occur.”