Wednesday, September 3, 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.
Binance app

Binance to invest US $53M to expand crypto in Mexico

1
Binance, the world’s largest cryptocurrency exchange, was founded in China in 2017 and caters to more than 270 million registered users in over 180 countries.
A wall of import/export shipping containers

Good news for Trump: Mexico is planning to raise tariffs on Chinese imports

10
Mexico's 2026 budget proposal includes increased tariffs on China, a move the Trump administration has been pushing since early this year.
Two men shake hands in front of an Amazon logo in Mexico City

Amazon teams up with Mexico City to save water with tech-driven infrastructure upgrades

0
In addition to water savings, automation will allow the city to direct water to eastern CDMX, an area historically plagued by shortages.
BETA Version - Powered by Perplexity