Tesla CEO Elon Musk announced Wednesday that the company will build its next Gigafactory in Mexico. The news came during the live Q&A sessions following Tesla’s Investor Day event, where it announced its Part Three Master Plan.
At the event, Musk revealed that the facility will be built in the Mexican state of Nuevo León, which shares a small border with Texas, home to Tesla’s Austin Gigafactory. Yesterday, Mexican President Andres Manuel Lopez Obrador confirmed that the project will be built in the city of Monterrey, about 620 kilometers from Tesla’s Austin headquarters.
The announcement confirms previous reports that Tesla was planning its sixth Gigafactory in Mexico. Musk reportedly visited three Mexican states in December before settling on Nuevo León. Local newspaper at the time reformed reported that the company would announce an initial investment of $800 million to $1 billion. It is reportedly expected to cost $10 billion at full maturity.
A day before Tesla’s Q4 earnings call in January, the automaker announced that it is investing $3.6 billion in its first Gigafactory in Nevada. That facility will have an additional 4 million square feet of production space for the production of Tesla Semi and 4680 cells. In total, Gigafactory Nevada will cost Tesla $9.8 billion.