While Tesla's Investor Day didn't seem to go over too well with some people, the company announced that it will start building a new factory in Mexico, which is arguably a really big deal. This is especially true considering construction could start any day now, the plan is to build the factory at record speed, and new EVs could be coming out of the plant in less than a year.
Despite a huge amount of scepticism, Tesla turned a muddy field in China into its most important factory at breakneck speed. Giga Shanghai applies highly efficient production practices to crank out Tesla Model 3 and Model Y vehicles for local consumption while also serving as the US EV maker's primary export hub.
Tesla's more recent factory construction efforts in Texas and Germany didn't prove to be as quick as those in China, but both factories are open and successfully ramping up. Now, the plan is to start building the newest factory near Monterey sometime this month, and Tesla may select another site and start building another new factory at the same time, much like it did with Giga Texas and Giga Berlin.
Tesla is reportedly just waiting for final permit approval to get the ball rolling. Once construction starts, the automaker aims to open the factory in record time. This will give Tesla the potential to start producing EVs in Mexico on its next-gen platform next year.
The company's upcoming factory will be located in Nuevo Leon, which is close to the border between the US and Mexico. According to Reuters via autoblog, Nuevo Leon Governor Samuel Garcia recently confirmed:
"They are waiting for the final permits ... once that's done, they can start, hopefully this very month, in March."
"I think by next year, in 2024, there will be the first autos."
Not only does Tesla plan to break records by building the factory in a matter of months and moving to EV production in less than a year, but also to produce the largest electric vehicle factory on the planet.
Mexican officials have shared that Giga Mexico will sit on an enormous plot of land and require an investment of some $5 billion. In addition to building EVs, the plant may also eventually add batteries and computer chips.
Mexican President Andres Manuel Lopez Obrador's approval of the Tesla factory also opens the door for Tesla's suppliers and other related companies to consider Mexico. Moreover, it strikes a positive note for potential investors.