Gary Zhou 
Key Points
- 🏭 Tesla is planning to build a Gigafactory in Mexico and is requesting the government to ensure the development of essential infrastructure before construction begins.
- 💡 The infrastructure includes energy supply, water resources, road networks, and railway facilities to support the Gigafactory.
- 🚗 Tesla aims to produce its $25,000 car at this Mexican Gigafactory, which is expected to have significant economic impacts on the region.
- 🌐 Tesla and the State of Nuevo Leon are in early discussions to determine the required investments for successful factory operation.
- ⏳ Tesla recently obtained environmental impact permits, allowing 26 months for site preparation and construction, with a target completion date at the end of 2025.
- 🌍 Tesla has plans for additional factories worldwide, including India and Thailand, with Mexico being the latest region to receive confirmation for a production plant.
Tesla wants energy, water, road, and rail infrastructure built in preparation for its massive Gigafactory in Mexico, and it is requesting the government to solidify these things before it begins construction.
Tesla chose Mexico earlier this year as the location of its next automotive production plant, and because of its massive effects in terms of economics for the country, the automaker needs to secure the necessary infrastructure to ensure success.
Tesla and the State of Nuevo Leon, where the factory will be built, are in the early stages of detailing investments and infrastructure needed to get the factory off the ground running. The state confirmed that today, according to a report from Reuters.
The project, which will build Tesla’s $25,000 car, “will trigger growth in the region, hence the need to invest in necessary infrastructure in roads, schools, health centers, and basic services,” Nuevo Leon government officials said.
But Tesla is still in need of several things that would ensure smooth operation of the factory, including an electric-energy substation and electric lines to where it will build the plant, the government said.
Tesla also wants a railway yard that will help transport materials to the factory to supplement the production of vehicles.
Last month, Tesla made a major stride in terms of the project as it won the necessary environmental impact permits that would help the company move forward with the initial construction phases.
The permits gave Tesla 26 months to prepare the site and carry out construction activities. The target for completion of the plant will be some time at the end of 2025.
The automaker has plans to build more factories and has been prospecting several areas throughout the world, including India and Thailand.
However, Mexico is the latest region to receive official word from the company that it would build a production plant.
