Home Brand Story Tesla is mobilizing Chinese supply chain companies to build factories in Mexico

Tesla is mobilizing Chinese supply chain companies to build factories in Mexico

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According to 36 Krypton reports, Tesla is trying to replicate a Shanghai factory in Mexico — including its supply chain system. To this end, Tesla is mobilizing Chinese supply chain companies to build factories in Mexico.


▲ Source: Tesla

According to reports, some Tesla suppliers have announced plans to build factories in Mexico. For example, Xusheng Group announced in March this year that it will establish a production base in Mexico, with a total investment of no more than 276 million US dollars. The project officially started in May in the Mexican state of Coahuila, and sources say the plant is expected to start production next summer.


▲ Source: Tesla

The report also said that more upstream equipment suppliers have also heard the news. A number of production line equipment manufacturers have set up offices in Mexico, responsible for design, after-sales support and other businesses. Some supply chain companies even took production line workers directly to Mexico to build factories.

The report pointed out that Tesla did not give these suppliers any additional support other than orders. Some industry insiders said that unlike building factories in China, which can obtain land and financial support, in Mexico, only tax incentives and talent subsidies can be obtained.

It was previously reported that Tesla announced that it will build a fifth super factory in Monterrey, the capital of Nuevo Leon, Mexico. Officials from the Mexican Ministry of Foreign Affairs have stated that the investment in the plant will exceed US$5 billion, with a planned production capacity of 1 million vehicles, which also means that the production capacity of the plant is approaching the Tesla Shanghai plant.

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