Initial investment size expected to be between $800 million and $1 billion
Expected announcement around Christmas

Local reports suggest Tesla may build a gigafactory in northern Mexico.

Mexican media outlet Reforma reported on the 19th (local time) that Tesla will build a gigafactory on the outskirts of Monterrey, Nuevo León, northern Mexico, starting with making parts and expanding into a factory that will also manufacture vehicles.

It is reported that the discussion about building a factory began in October when Tesla CEO Elon Musk visited Nuevo León state and met with Nuevo León Governor Samuel Garcia and U.S. Ambassador to Mexico Ken Salazar.

Reforma estimates that the initial investment will be between $800 million and $1 billion, with future expansion expected to bring the total investment to $10 billion.

It was expected that Elon Musk would make an announcement about the construction of the Gigafactory as early as before Christmas or within January.

Another Mexican news outlet, Melenio, reported that Tesla's cargo truck factory will be built in the Santa Catarina region, outside Monterrey.

Tesla has already received permission from the state of Nuevo León for its own lane on the border road and from SantThe Catarina region is only a seven-hour drive from Austin, Texas, where Tesla's headquarters are located.

Its geographical location bordering the United States and its lower labor costs compared to the United States are cited as advantages.

Near the international airport in Monterrey, the capital of Nuevo León, there are many factories of Korean companies, including Hyundai Glovis, Hyundai Autoever, Hyundai Engineering, and Kia Motors.