Tesla Inc (NASDAQ:TSLA)’s new gigafactory in Mexico will be almost twice the size of existing plants, potentially becoming the world’s largest electric vehicle (EV) factory, according to local officials.
A proposed site for the new plant, in Nuevo Leon state, northeast Mexico, spans around 4,200 acres, far larger than the EV giant’s Texas plant of 2,500 acres, locals said.
Jesus Nava, mayor of local city Santa Catarina, hinted construction of the new site, which will employ 10,000 people and receive investments totalling US$10bn, could start in the next three months.
"This will bring a great economic spillover," Nava added.
Tesla chief executive Elon Musk is yet to firm up the plans in any great detail, however, having confirmed the site’s location at the investor day event on Wednesday, but declined questions about the timing and design of new vehicles.
"It's simply about expanding our total global output,” Musk said, fuelling speculation from Mexican officials that the new plant could produce 1mln cars a year.
The new site will join three others producing Tesla's vehicles – Texas, Shanghai and Berlin – boosting capacity after it produced a record 1.37mln units in 2022.