The president of Mexico announced on Tuesday, local time, that Tesla will build a factory in Monterrey, the capital of the Mexican state of Nuevo León, to increase global production to meet Musk’s goal of producing 20 million electric cars a year by 2030.
Mexican President Andrés Manuel López Obrador (Andrés Manuel López Obrador) said the new factory will be a “considerable investment” that will provide many jobs.
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He did not provide specific details on the size or scope of the facility but said Tesla will announce more details on Wednesday ( Tesla is hosting an investor day today, where Musk is expected to detail the company’s plans).
However, the Mexican foreign ministry official said Tesla’s factory in Mexico will produce 1 million electric cars per year for the Mexican domestic and international markets (note: the Shanghai mega-factory currently has a capacity of more than 1.1-1.2 million), and he said the Mexican Tesla factory investment is worth more than $5 billion.
Musk said last year that the electric car company may need to add 10 to 12 more mega-factories to its existing facilities (California, Nevada, Texas, New York, Shanghai, China and Berlin, Germany) to boost its car production. The company said it wants to produce 20 million electric cars a year by 2030.
According to Reuters, the announcement came after the Mexican president responded to the water shortage on Friday (Tesla was denied a permit to build a factory in the state where Monterrey is located because of a lack of water) by saying that Tesla had made several commitments to address the region’s water shortage, including a commitment that all water used to build electric cars would be recycled water.