Elon Musk Unveils Plans for $10 Billion Tesla Gigafactory

Tesla CEO Elon Musk recently announced the construction of a new $10 billion Gigafactory to produce electric vehicles. But Tesla won’t be bringing jobs to the United States — his latest plant will be located in Mexico.

The Verge reports that Tesla has announced that it will be constructing its sixth Gigafactory in Mexico, where it will produce a new type of car. CEO Elon Musk announced the new plant at the company’s Investor Day event, where he also disclosed that the new facility will be situated in the Mexican state of Nuevo León.

The announcement represents a significant turning point for Tesla, which has been increasing its production capacity in recent years to keep up with the rising demand for its electric vehicles. At full maturity, the new Gigafactory is anticipated to cost approximately $10 billion, making it one of the largest factories in the entire world.

Musk only mentioned that a “proper product event” will be held in the future, offering no additional information about the next-generation car that will be produced at the factory. According to reports, the new car might be a compact car intended for city driving.

Only a few months have passed since Tesla announced plans to expand its current facilities in Nevada before the announcement of the new Gigafactory. The company announced in January that it was investing $3.6 billion in its first Gigafactory, adding 4 million square feet of additional manufacturing space for the production of Tesla Semi trucks and 4680 cell batteries.

The locations of Tesla’s additional Gigafactories include Nevada, Texas, New York, Shanghai, and Berlin. The company has been rapidly increasing its production capacity to meet the rising demand for its electric vehicles, which are seen as a key element in the transition to a low-carbon economy.

Thousands of new jobs are anticipated to be created at the facility in the area, which has been severely affected by the coronavirus pandemic. Mexican President Andres Manuel Lopez Obrador stated: “This is going to mean a considerable investment and many, many jobs. My understanding is that it will be very big.”

The new Gigafactory is expected to be built in the city of Monterrey, which is 387 miles away from Tesla’s corporate headquarters in Austin, Texas. The city is well-known for its industrial past and has a long history of manufacturing.