A state governor in Mexico said Tesla and suppliers would invest US$15bn over the next two years in a factory near Monterrey, 200km (120 miles) from the US border.

Last March, Mexican officials said Tesla would build the new factory with an initial investment of $1bn which could rise to $5bn with component manufacturing facilities including batteries.

Related Company Profiles

View all

Now, it appears the overall investment by automaker and suppliers could triple.

According to Reuters, Tesla planned to begin production in Mexico in 2025 but the company was yet to announce a construction start date.

The new plant would help meet growing demand for EVs in the US as vehicles produced in Mexico would qualify for tax breaks and other incentives worth up to $7,500 per vehicle under the US Inflation Reduction Act (IRA).

See Also:

Other automakers such as BMW, General Motors and Ford have also announced EV investments in Mexico.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Mexico provides advantages such as “relatively cheap labour and free trade agreements with 50 countries”, Bloomberg noted.