Tesla to submit formal letter of intent for Giga Mexico: report

Key Points

  • 📅 Tesla is expected to submit a formal letter of intent for Gigafactory Mexico on September 15, 2023.
  • 🏭 Gigafactory Mexico will house Tesla’s new production line for a $25,000 compact electric vehicle (EV).
  • 🌿 Tesla has submitted an environmental impact statement for Gigafactory Mexico, including plans for flora and fauna during construction.
  • 🚧 The Governor of Nuevo León, Samuel Garcia Sepulveda, is actively involved in facilitating the project and addressing infrastructure needs.
  • ⏳ Tesla aims to potentially start production at Giga Mexico by 2025, although some challenges in the permitting process have been suggested.
  • 🌎 Gigafactory Mexico’s progress is drawing parallels to Giga Berlin in terms of permit challenges and environmental considerations.

Tesla is expected to deliver a letter of intent on Friday, September 15, to formally start the installation and buildout of Gigafactory Mexico. 

“On Friday (today) they will give us the letter. They tell me that nothing can be said until they have the letter that makes it official (the start-up of the Gigafactory,)” a source reportedly told Milenio.

Through his personal Instagram, the Governor of Nuevo León, Samuel Garcia Sepulveda teased Tesla’s move to submit a letter of intent for Giga Mexico. He invited several Tesla executives and Mexican government officials to his home earlier this week. 

“I am also about to receive the start-up of the Gigafactory from Tesla…We are going to start with the whole issue of water, it is treated water, from the train and adaptations and access to the highway, highway (Monterrey-Saltillo) to the plant, so pure good news, we are working with everything,” the Governor said.

Based on Gov. Sepulveda’s comments, Gigafactory Mexico is following a similar path as Giga Berlin. Permits for Giga Berlin’s water usage and supply, as well as transportation, were a major challenge for Tesla. Water issues still hover around Giga Berlin to this day.

Last month, Tesla submitted Gigafactory Mexico’s environmental impact statement to local officials. The documents labeled Giga Mexico “Project Mario” and provided Tesla’s plan for the flora and fauna during construction. Tesla has also requested a change of land use from the Ministry of Environment and Natural Resources. 

Tesla Giga Mexico will house the company’s new production line for its $25,000 compact electric vehicle (EV). In April, Gov. Sepulveda estimated that Gigafactory Mexico would take 12 -15 months to build. For reference, Giga Shanghai holds the fastest buildout record among the Tesla factories all over the world. 

With the Governor’s estimation in mind, Tesla might start production at Giga Mexico by 2025, meeting the company’s goals. However, a Chinese supplier suggested that Tesla might have underestimated Mexico’s permitting process.

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