Tesla to build an electric car plant in Mexico

Tesla will build an electric car production plant in Monterrey, Mexico, Bloomberg reported Friday, citing sources who requested anonymity.

The company is focused on fine-tuning all of its production vehicles to their installed production capacities, as well as increasing the capacity of its existing factories.

As of early 2022, Tesla’s production was still affected by industry-wide shortages of semiconductors and other components.

Model Y builds at Gigafactory Texas and equipment testing through the vehicle production process at Gigafactory Berlin began in late 2021.

The next phase of production growth will depend on testing and ramping at Gigafactory Berlin and Gigafactory Texas, as well as the ability to add to its available sources of battery cell supply by manufacturing its own cells that it is developing to have high-volume production, lower capital and production costs and greater range.

In line with the approach to innovate manufacturing techniques in its new factories, Tesla also expects to pioneer new methods related to mass production of these cells and its unique structural battery pack concept.

The company’s goals are to improve vehicle performance, reduce production costs and increase affordability.

Electric car

However, these plans are subject to the uncertainties inherent in establishing and ramping up manufacturing operations, which may be exacerbated by the number of concurrent international projects, any industry-wide component constraints that may increase the number of manufacturing and production design solutions required, labor shortages, and any future impact of events beyond its control, such as the Covid-19 pandemic.

In addition, the company must meet ambitious technology targets with its plans for battery cells, as well as iterative manufacturing and design improvements for its vehicles with each new factory.

Tesla designs, develops, manufactures, sells and leases high-performance all-electric vehicles and energy generation and storage systems, and offers services related to its products.

It generally sells its products directly to customers, including through its website and retail outlets.


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