Friday, December 12, 2025

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 

3 COMMENTS

Have something to say? Paid Subscribers get all access to make & read comments.
Stellantis plant

Automaker Stellantis planning major expansion of its Mexican operations  

2
Its reinforced commitment to Mexico strikes a contrast to some other global automakers who have either moved out or paused plans to move in.
AI conference

Nearly 40% of businesses in Mexico now using AI, says AWS executive

2
Around 495,000 companies in Mexico have adopted AI over the last year, with 2 million businesses now using the technology, according to Amazon Web Services’ (AWS) general manager Rubén Mugártegui.
Sheinbaum at Business COuncil luncheon 2025

Mexico’s business elite presents President Sheinbaum with a US $40 billion investment package

0
The proposal came during the president's annual end-of-the-year luncheon with the Mexican Buiness Council (CMN), the atmosphere of which was reportedly warm and positive.
BETA Version - Powered by Perplexity