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Tesla (TSLA) and suppliers to invest $15B in Mexican gigafactory

September 12, 2023 8:40 AM

Mexican authorities announced on Monday that Tesla (NASDAQ: TSLA) and its suppliers are planning to invest $15 billion in a factory that is currently under construction over the next two years. This figure is three times higher than the previous estimate provided by Mexican officials.

Tesla CEO, Elon Musk announced back in March, that the company plans to open a gigafactory in northern Nuevo Leon state as part of the electric automaker's push to expand its global footprint. At that time, Musk did not provide specific information about Tesla's investment, but Mexican authorities indicated that the factory would require a $5 billion investment.

Speaking at an event, Nuevo Leon Governor Samuel Garcia said the facility will now involve three times that amount.

"Just Tesla and its suppliers will generate an investment of $15 billion in two years," the governor said, adding that this "enormous amount" will require the state to spend more on highways and other public works.

Shares of TSLA are down 0.67% in pre-market trading Tuesday morning.

By Michael Elkins | [email protected]

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