Tesla is considering an EV plant in Mexico City, an official says

SAN ANTONIO – Tesla Inc. is reportedly considering building an electric vehicle plant in Mexico City.

The company is eyeing a developing industrial park near Felipe Angeles International Airport, which opened last year, Mexican President’s spokesman Jesus Ramirez told Reuters.

“Tesla intends to invest in this space to capitalize on Felipe Angeles International,” Ramirez said, noting that the location could provide a base for the Austin-based automaker to export by air.

Tesla CEO Elon Musk has been looking for locations in northeastern Mexico to expand from his growing base in Texas. Last month, Bloomberg reported that Tesla is finalizing plans for an assembly plant in an industrial area in Santa Catarina, on the outskirts of Monterrey. It is the capital of Nuevo Leon, a Mexican state bordering Texas.

CONTINUE READING: Tesla will begin production of the long-delayed Cybertruck in Austin this summer, Musk says

Tesla did not respond to a request for comment on Tuesday.

Musk has expanded his various business ventures in central and south Texas, including new locations to operate Tesla, SpaceX, The Boring Co., and Neuralink. Last year he spoke about Tesla’s expansion, hinting at building between 10 and 12 new gigafactories like one near Austin.

The company moved to central Texas in 2021 and last April opened its $1 billion Gigafactory Texas where it makes Model Y SUVs and plans to start producing its Cybertruck this summer.

Tesla plans to spend about $775 million to expand its facility off Texas 45 and US 130 near Austin-Bergstrom Airport, according to filings with the Texas Department of Licensing and Regulation.

RELATED: Tesla will invest $3.6 billion to expand Nevada truck factory

Last week, the company announced that it plans to invest $3.6 billion to expand manufacturing capacity at its Gigafactory in Nevada as well. The company plans to produce semi-trailers there and produce enough cell batteries for 2 million light commercial vehicles annually.

“It’s already the largest battery cell, pack and electric motor factory in America,” Musk said on Twitter post Tuesday afternoon, later add to: “We anticipate that over time, Giga Nevada will be almost entirely solar powered.”

Tesla recently reported fourth-quarter net income of $3.7 billion, up 59 percent from the same point a year ago. It also posted record earnings. The earnings come after a year of declining margins and price cuts on some vehicles, which analysts say are signs the company’s sales are slowing.

Tesla shares lost more than 60 percent of their value last year but have recovered in the new year. They were trading at $172.37 a share Tuesday afternoon, up 3.42 percent.

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