Tesla may announce US$800m to US$1b in Mexico plant in coming days

ELECTRIC carmaker Tesla could announce the construction of a “Gigafactory” in the northern Mexican state of Nuevo Leon as soon as on Friday (Dec 23), with an initial investment of between US$800 million and US$1 billion, local newspaper Reforma reported on Monday.

The total investment, taking into account future expansions, could eventually reach US$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 US 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. REUTERS