Tesla, suppliers to invest $15 billion in Mexico factory

Mexico City, Sept. 12 (BNA): A state governor in Mexico said on Monday that Tesla (TSLA.O) and its suppliers would invest $15 billion over the next two years in a factory that is still under construction, an amount that is triple what Mexican officials previously announced.

 

 

In March, Tesla CEO Elon Musk said his company would open a gigafactory in northern Nuevo Leon state, part of the electric carmaker’s push to expand its global footprint.

 

At the time, Musk did not detail Tesla’s investment, but Mexican officials said the factory would involve a $5 billion investment.

 

Speaking at an event, Nuevo Leon Governor Samuel Garcia said the facility will now involve thrice that amount.

 

Neither Tesla’s press office nor Nuevo Leon officials responded after hours to a request for comment on the governor’s comments.

 

“Just Tesla and its suppliers will generate an investment of $15 billion in two years,” the governor said, adding that this “enormous amount” will require the state to spend more on highways and other public works.

 

Prior to Tesla’s announcement earlier this year, major global automakers BMW, General Motors and Ford had all announced plans to begin or step up electric vehicle production in Mexico’s massive automaking sector as the industry transitions away from cars powered by fossil fuels.

 

Sources had previously told Reuters that Tesla planned to begin production in Mexico in 2025, but the company has not announced a start date for construction of its gigafactory or when output will come online.

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