Tesla Gets Permits For Gigafactory Mexico, Construction Could Begin By Year’s End

Tesla has received the necessary permits to begin construction of its latest EV factory in Mexico, according to news outlet Milenio, which got its hands on the official local and federal documents.

The country’s Secretariat of Environment and Natural Resources (SEMARNAT) notified Tesla’s manufacturing subdivision that the permits needed for obtaining the final authorization from the Federal Government have been issued, the news story embedded at the top of this page mentions.

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Tesla's sixth vehicle factory enters the fast track, maybe

The American EV maker was formally notified by the Mexican authorities that the permits needed to build a car factory in the state of Nuevo Leon were issued. The factory will assemble a mass-market $25,000 entry-level EV based on a new platform.

What’s interesting is that Tesla also bought the land under which the plant will be built last week, a sign that things are progressing in the right direction. That said, it’s not clear when construction will begin at the company’s newest and biggest factory.

The news anchor paraphrased the Mexican state of Nuevo Leon, saying that the groundbreaking could happen in the following weeks, but in the end, the decision lies with Tesla.

It’s worth noting that the land surrounding the future factory is already being developed by the state, with access roads and other infrastructure under construction with funding from the state of Nuevo Leon.

According to a Reuters report, local authorities said they would spend over $130 million on infrastructure to support the construction of Giga Mexico, with the mayor of Santa Catarina city, Jesus Nava, hoping that Tesla would start its own construction work in the first half of 2024.

At the same time, however, the company’s head honcho adopted a rather pessimistic take regarding the plant’s future.

"In Mexico, we're laying the groundwork to begin construction and doing all the long lead items, but I think we want to just get a sense of what the global economy is like before we go full tilt," Elon Musk said during the third-quarter earnings call two months ago.

Tesla’s Mexico factory was announced back in March when it was described as being “the biggest electric vehicle plant in the world,” with an estimated investment of over $5 billion. The facility is expected to build the marque’s next-generation platform which will reportedly underpin both the $25,000 entry-level EV and the company’s Robotaxi.