World's biggest EV factory soon in Mexico courtesy Tesla, says govt official

Tesla will soon begin manufacturing its electric vehicles (EVs) in Mexico, as per a government official in the country. The US-based EV manufacturer is reportedly in the final phases of receiving permits which would ensure that a plant can be established here. Construction of the plant may start this month itself with the first units coming off of assembly lines in a year's time.

While Tesla has not confirmed its plans for a plant in Mexico, the announcement came from Nuevo Leon Governor Samuel Garcia, as per Reuters. “They are waiting for the final permits ... once that's done, they can start, hopefully this very month, in March. I think by next year, in 2024, there will be the first autos," he reportedly said. The proposed plant will come up in Nuevo Leon near the U.S.-Mexico border.

Mexican officials further claim that Tesla would invest around $5 billion into the facility in the country which would be the biggest EV manufacturing factory anywhere in the world. Garcia has also added that the plant could eventually also serve as a center for manufacturing of chips and batteries. "That's why they bought a very large plot of land," he added, further pointing to ‘thousands of acres of land’ being allocated for the facility.

Tesla has been hunting for newer sites for future factories and while it has several operational facilities in the US, in Shanghai and in Europe, the Mexican facility could be yet another shot in the arm for the EV giant as it looks to extend its dominance in the world of battery-powered mobility options.