New York
CNN
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Tesla’s subsequent car meeting plant might be in Mexico close to Monterrey, CEO Elon Musk introduced Wednesday.
“We’re super excited about it,” Musk mentioned all over an investor day for the corporate. “We’ll continue to expand production at all of our existing factories. So this is not moving output to anywhere, from anywhere. This is supplemental production.”
The corporate these days has capability to construct about 2 million vehicles a yr at 4 factories, in Fremont, California; Shanghai, China; Austin, Texas; and Berlin, Germany. It has set a function of in the end development 20 million vehicles a yr. The corporate delivered simply over 1.3 million vehicles in 2022. The biggest automaker on the earth by way of manufacturing quantity, Toyota, delivered simply over 10 million vehicles globally in 2022.
Tesla didn’t touch upon the price of the brand new plant. The information used to be a affirmation of plans introduced Tuesday by way of Mexican President Andres Manuel Lopez Obrador for Tesla to construct its subsequent manufacturing unit within the nation. Reuters reported that Mexican officers mentioned the plant may value $1 billion.
The corporate estimates to construct the extra vegetation wanted to achieve 20 million cars will value a complete of $150 billion to $175 billion, together with the $28 billion in funding that it has already made in its historical past.
“Maybe this total investment looks large,” mentioned CFO Zachary Kirkhorn. “I think its quite small relative to our ambitions.”
The corporate additionally introduced that previous Wednesday it constructed 4 million cars in its historical past.
Shares of Tesla
(TSLA) slipped greater than 5% in after-hours buying and selling Wednesday, despite the fact that that used to be up a bit of from a bigger decline prior to Musk’s announcement greater than 3 hours into the presentation. There have been hope by way of some buyers that Tesla
(TSLA) would announce information about a subsequent era of cars. Musk declined to respond to a query concerning the subsequent era car.
“We will have a proper sort of product event,” Musk mentioned. “We’d be jumping the gun if we were to answer that question.”
In reaction to every other query from an analyst, Musk mentioned he doesn’t look ahead to Tesla ever having greater than 10 other cars in its product lineup. He derided the vast choices of competing automakers as merely a “shuffling” of many equivalent fashions.
The Inflation Reduction Act handed final yr restored tax credit of as much as $7,500 to consumers of the more cost effective Tesla vehicles, the Model 3 and Model Y, so long as their checklist worth is below $55,000. To qualify for the tax credit score, the vehicles will have to be assembled in North America, so the eventual output from the plant in Mexico must qualify.
Most of the worldwide automakers have already got meeting vegetation in Mexico. According to Reuters, there are 20 auto meeting vegetation within the nation. General Motors has 3, Ford has two, together with person who make its Mustang Mach-E, the EV SUV that may be a competitor to Tesla. Stellantis — which builds vehicles below the Chrysler, Dodge, Ram and Jeep manufacturers — has 3.
In addition Toyota, Honda, Nissan, Volkswagen, Audi, Mazda, Mercedes, Kia and BMW all have vegetation in Mexico.
According to stats from the USA Trade Administration, part of the Commerce Department, Mexican vegetation had been generating just below 4 million vehicles a yr within the years prior to the pandemic lowered the provision of car portions, specifically laptop chips, and auto manufacturing international. They produced about 3.5 million vehicles final yr. That makes it the 7th biggest nation in the case of auto manufacturing.
But 90% of the vehicles it builds are exported, with 76% destined for the United States.
