Tesla may announce $800 million to $1 billion in Mexico plant in coming days - report
Reuters
Published Dec 19, 2022 09:19AM ET
Updated Dec 19, 2022 09:57AM ET
MEXICO CITY (Reuters) -Electric carmaker Tesla (NASDAQ:TSLA) could announce the construction of a "Gigafactory" in the northern Mexican state of Nuevo Leon as soon as Friday, with an initial investment of between $800 million and $1 billion, local newspaper Reforma reported Monday.
The total investment, taking into account future expansions, could eventually reach $10 billion, sources told the newspaper.
The announcement would follow Chief Executive Elon Musk's visit to the state, which borders Texas, in October. A source told Reuters then that Musk had met with Nuevo Leon Governor Samuel Garcia and U.S. Ambassador to Mexico Ken Salazar.
The Mexican Gigafactory, planned on the outskirts of the city Monterrey, would start by building components for current Tesla models, a source told Reforma, later possibly building a new model at a lower cost than other factories.
A federal official told Reuters Tesla would announce news of its planned investment when it was ready to do so, but that it would not necessarily be before Christmas.
If the announcement does not take place on Friday, it could come in January, according to Reforma.
Mexican Foreign Minister Marcelo Ebrard said earlier this month that Musk had toured three states in Mexico scouting locations for the factory.
Tesla did not immediately respond to a Reuters request for comment.
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Written By: Reuters
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