The opening of Tesla Inc‘s TSLA Gigafactory in Mexico, initially scheduled for the second half of 2024, has been delayed to the first quarter of 2025, according to a Chinese media outlet, Drive Tesla Canada reported.
Reasons for Choosing Mexico
Tesla chose to build the Gigafactory on a 4,200-acre site in Monterrey, Mexico, due to the Inflation Reduction Act (IRA), which provides incentives to automakers for producing vehicles in North America. Tesla has been working with its Chinese suppliers to set up factories in Mexico to support the Gigafactory.
See Also: Tesla Giga Mexico Aims To Be The Most Water-Efficient Auto Plant Worldwide
Delay in Opening
According to sources within the Chinese supply chain, Tesla has informed its partners to be ready to supply Giga Mexico in the first quarter of 2025, a delay of about six months from the original plan. The delay is attributed to the challenges of building a factory in Mexico, including higher capital expenditures, labor costs, and inadequate existing infrastructure.
Future Plans
The plant, estimated to cost $10 billion and expected to employ around 7,000 workers, aims to replicate the efficient supply chain model established in Giga Shanghai. Once operational, it will produce Tesla’s next-generation vehicle platform, expected to cost less to manufacture and sell for less than Tesla’s existing lowest-cost vehicles.
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Photo courtesy: Tesla
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