The next Tesla gigafactory could be in Mexico

The next Tesla gigafactory could be in Mexico

Elon Musk is looking for new locations for the next Tesla factory, and, although it is not yet clear where it will end up, Mexico has many ballots to be the location chosen by the firm, along with Canada and the US.

In a meeting with its employees last week, which has been echoed Electrek the CEO of Tesla confirmed to his workers that the company is looking for new locations to build an additional factory that would allow Tesla to maintain and increase production.

In this sense, one of the workers asked where in the US the new factory would be located, to which Elon replied that the company had not decided. But he did not stop there. He also added that it would not necessarily have to be located in the United States. “We’re looking at sites, but we’re looking at some site options more broadly in North America, so that includes Canada and Mexico, and also the US,” the CEO said.

The priority is to increase production in Texas, but Tesla wants another factory

Elon Musk also hinted that while Tesla is actively looking for new sites to put its next gigafactory, the company’s current priority in North America is to increase the volume production of Gigafactory Texas. Although, as we can see, they are not closed to putting more factories:

The priority is definitely to get Giga Texas to reach a higher volume of production volume and it is difficult to get there. It’s much more important that we get Texas up to production volume than it is to find a new site, but we’re looking.
The difficulty of increasing the volume in Giga de Texas has to do with the changes in the Model Y and its structural battery system with the famous 4680 cells. For the company it is a challenge, given the global situation, increase the volume of battery production and SUV manufacturing so it is logical that reversing this situation is Musk’s top priority before starting a new factory.

However, it is expected that at some point at the end of the year, Elon Musk will announce where the new factory will be located definitively, and as the Tesla CEO has pointed out, the chances that it will be in Mexico are relatively high.