Tesla Will Build Cheaper, Next-Gen Electric Cars In Texas, Not Mexico: Report

Tesla Inc. TSLA will now manufacture its next-generation electric vehicles in Texas instead of Mexico as initially planned, Electrek reported.

The news emerged from an excerpt of Elon Musk‘s biography, providing reassurance amid potential delays in establishing the new Gigafactory in Mexico.

During Tesla’s 2023 Investor Day in March, Musk revealed a new car manufacturing system for producing cheaper electric vehicles. Named the “Unboxed Process,” it deviates from traditional car manufacturing models.

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Next-generation Tesla vehicles, including a cheaper “$25,000 model” and a robotaxi, are anticipated to be the first to utilize this new system. Originally, Gigafactory Mexico was expected to be the initial Tesla factory to employ this process.

However, in May, the plan was altered due to the logistical impracticality of moving Tesla engineering to Mexico, according to a statement by Musk to biographer Walter Isaacson.

The revised plan now involves building the next-generation cars and robotaxis in Austin, Texas first. These two new vehicles are crucial to Tesla’s goal of manufacturing 20 million vehicles annually by 2030.

This shift in plans is expected to mitigate concerns over Gigafactory Mexico falling behind its ambitious timeline. It is believed that establishing the new production process in an existing Texas factory will be more feasible and aid replication in future factories like Giga Mexico.

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