Tesla's Mexico Gigafactory To Be EV Maker's Largest Manufacturing Plant in America? Explained

Tesla recently announced plans to set up a new Giga factory in Mexico. The new Tesla Giga factory is expected to be one of the largest manufacturing plants in the automotive industry. Confirming the news, Elon Musk's company revealed an image of the planned site. However, the electric vehicle manufacturer has kept quiet about the manufacturing details. Just so you know, this new site will be used to produce the new generation of all-electric Tesla cars.

Following the announcement, the Mexican government revealed a few details about the Tesla Giga factory. As per the details revealed earlier, the manufacturer's factory stretches across about 4,200 acres in an industrial area in the Santa Catarina municipality close to Monterrey (Nuevo Leon). This is 68 percent more than the Tesla Giga Texas has (2,500 acres).

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The size of the investment, which is believed to be $10 billion and 10,000 people ($5 billion and 5,000 initially), represents the scale of the factory. Although the specifics are unknown, it may involve both the manufacture of vehicles and other components like drivetrains and battery cells.

Reuters' report claims that a top Mexican official suggested an annual output of one million automobiles. One million units per year may be the starting goal, with another million units per year to be added later.

When the Tesla Giga Mexico is set up, it will be the company's third manufacturing plant outside of the US, alongside the factories in China and Berlin. The manufacturer will attempt to duplicate the success of the Gigafactories in Shanghai and Texas, which Tesla was able to bring into production quite rapidly.

The fact that Monterrey is within a seven-hour drive from Tesla's corporate offices and the Gigafactory Texas is one of the factors that led to the decision. Also, Tesla was able to get an intriguing agreement that will improve transportation between the locations.