Tesla considering opening auto factory in Mexico

Plant could produce company’s new all-electric Class 8 Semi truck, according to reports

Tesla CEO Elon Musk held a meeting in Mexico in October with Mexican officials, along with Ken Salazar, the U.S. ambassador to Mexico, to discuss investments in the country. (Photo: Tesla)

Electric vehicle maker Tesla could soon announce its first automotive assembly plant in Mexico, according to Milenio.

The automaker is reportedly acquiring land in Nuevo Leon, a Mexican state bordering Texas, and will produce the new Semi, an all-electric Class 8 truck, at the site.

“Tesla will arrive in Santa Catarina [Nuevo Leon]. In the coming weeks, the investment will be finalized, [and] after the end of the year it will be announced,” read the document that Milenio reviewed.

Santa Catarina is a small municipality near the Mexican city of Monterrey, about 140 miles from the U.S.-Mexico border crossing in Laredo, Texas.

Tesla CEO Elon Musk held a meeting in Mexico in October with Nuevo Leon Gov. Samuel Garcia, along with Ken Salazar, the U.S. ambassador to Mexico, to discuss investments in the country, according to Reuters.

Austin, Texas-based Tesla has its own lane at the U.S.-Mexico border crossing in Nuevo Leon to facilitate trade for local automotive suppliers, the state government announced in August.

Tesla debuted its long awaited Semi truck earlier this month during a live event at the company’s Nevada Gigafactory. 

Tesla (NASDAQ: TSLA) delivered the first two Semi trucks to PepsiCo subsidiary Frito-Lay during the Nevada event. 

According to Musk, Tesla is aiming to ramp up Semi production to 50,000 units per year by 2024. Tesla has not officially announced where Semi production will take place.

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com