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Tesla and its suppliers to invest $15 billion in new Gigafactory

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According to Reuters, a Mexican state governor has stated that Tesla and its suppliers will invest $15 billion in the Nuevo Leon gigafactory over the next two years. This is nearly triple the amount originally announced by the Mexican government.

“Just Tesla and its suppliers will generate an investment of $15B in two years,” said Nuevo Leon Governor Samuel Garcia at an event, adding that this “enormous amount” will necessitate increased state spending on roads and other public works.

Tesla CEO Elon Musk revealed in March that the company intends to build a gigafactory in northern Nuevo Leon state as part of the electric automaker’s global expansion efforts. Musk did not disclose exact information regarding Tesla’s investment at the time, but Mexican officials stated that the factory would require around $5 billion.

While Tesla has not specified a timeline for building of the gigafactory, sources previously told Reuters that production may begin in 2025.

Tesla’s endeavor is the biggest recent investment in the Latin American electric vehicle market. However, other automakers, including BMW, GM, and Ford, have declared plans to increase EV production in Mexico as well.

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