Model 3

Make
Tesla
Segment
Sedan

Tesla and the Mexican border state of Nuevo Leon are reportedly finalizing a deal that will see the electric vehicle automaker build yet another new factory in the near future. Specific details are not yet known, but according to Automotive News, per the Spanish language Milenio newspaper, Tesla CEO Elon Musk and state government officials are "fine-tuning the final details" right now. The goal is "to announce the installation of a factory in the state, which is expected to be made public in early 2023."

Tesla, as expected, did not respond to the press reports because it shuttered its media relations department back in 2020. Nuevo Leon officials also refused to comment. Why Nuevo Leon, you may be asking? Because it borders Texas, thus making it the ideal location for a new Gigafactory that's ideally located relatively close to the US.

Also, General Motors and Kia already have production plants in the Mexican state for the same reason. The original report further states that there's land available near the Nuevo Leon capital of Monterrey. "The sources said the land for the plant had already been acquired, and there is a commitment to finalize the investment in early January," the source said.

Interestingly, Milenio could not locate any land sale records in public documents. The reason for that could have to do with nondisclosure agreements signed by Nuevo Leon Governor Samuel Garcia and other state officials. Garcia previously hinted that some significant business investments were happening soon.

Musk has been previously spotted with state officials at an event in, coincidence or not, Monterrey. Mexico has identified the EV industry as a potentially huge source of revenue for building not only the vehicles (the Ford Mustang Mach-E is assembled at a facility near Mexico City) but also their components.

What remains unknown is which Tesla vehicle will call Monterrey home. The Texas Gigafactory is already churning examples of the Model Y and, hopefully soon, the Cybertruck. Chances are the expected new Mexican Gigafactory will assemble the Model 3 and Model Y, both of which are the automaker's best-sellers. We should be hearing more details and an official announcement as soon as next month.