MEXICO CITY, Sept 11 (Reuters) – A state governor in Mexico said on Monday that Tesla (TSLA.O) and its suppliers would invest $15 billion over the next two years in a factory still under construction, an amount that is triple what Mexican officials had previously said.
In March, Tesla CEO Elon Musk said his company would open a gigafactory in the northern state of Nuevo Leon as part of the electric carmaker’s push to expand its global footprint.
At the time, Musk did not specify Tesla’s investment, but Mexican officials said the factory would involve a $5 billion investment.
Speaking at an event, the governor of Nuevo Leon, Samuel Garcia, said the plant would now involve three times that amount.
Neither Tesla’s press office nor Nuevo Leon officials responded after hours to a request for comment on the governor’s remarks.
“Tesla and its suppliers alone 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.
Prior to Tesla’s announcement earlier this year, major global carmakers BMW, General Motors and Ford had all announced plans to start or increase electric vehicle production in Mexico’s massive automotive sector as the industry transitions away from fossil fuel-powered cars.
Sources had previously told Reuters that Tesla planned to begin production in Mexico in 2025, but the company has not announced a start date for construction of its Gigafactory or when production will begin.
