Thursday, January 8, 2026

Got 1 min? Elon Musk says ‘next-gen’ Tesla vehicles to be made in Mexico

Tesla will make a new “low-cost” electric vehicle (EV) at its as yet unbuilt plant in Nuevo León, the company’s CEO Elon Musk said in an interview.

Musk, who announced in March that Tesla would build a “gigafactory” near Monterrey, spoke about the planned US $25,000 “next-gen” model in an interview with automotive engineer Sandy Munro that was posted to YouTube on Tuesday.

Elon Musk in an interview
Elon Musk says that Tesla plans to manufacture its lower cost EV model at the gigafactory in Mexico, which is supposed to break ground in 2024. (Screen capture)

“The first production will be here in the gigafactory in [Austin], Texas,” said the 52-year-old magnate, adding that the plant in Nuevo León will be “the second place” to manufacture the new EV.

“It would take too long to complete the factory in Mexico,” Musk added, apparently explaining why the planned Santa Catarina plant won’t be the first facility to make the vehicle.

The Tesla CEO said earlier in the interview that the low-cost electric vehicle – often referred to generically as the “Model 2” – “will be made at very high volume.”

“We’re quite far advanced. … I review the production line plans for that every week,” Musk said.

“The revolution in manufacturing that will be represented by that car will blow people’s minds. It’s not like any car production line that anyone’s ever seen. … It’s a level of production technology that is far in advance of any automotive plant on earth. It’s going to be cool,” he said.

Musk said in October that Tesla is “laying the groundwork” in Mexico to begin construction on its new gigafactory, adding that the initial phase of the plant will begin in early 2024.

Tesla hasn’t revealed how much it intends to invest in the plant, but estimates are in the US $5-10 billion range.

Nuevo León Governor Samuel García said in September that Tesla and its suppliers will invest US $15 billion in the northern state.

Mexico News Daily 

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